How Nvidia’s Jensen Huang Avoids U.S. Estate Taxes

On 5 December 2024, The New York Times published an article titled "How One of the World’s Richest Men Avoided $8 Billion in Taxes". That “one of the world’s richest men” is Jensen Huang, the founder and CEO of Nvidia, the artificial intelligence (“AI”) chip company that currently ranks as the second-largest company in the world by market capitalization (it briefly held the top spot before being overtaken by Apple on the day of publication).

Thanks to Nvidia’s surging stock price, Huang’s net worth has skyrocketed. According to Forbes, as of 6 December 2024, Huang ranks as the 11th richest person in the world, with a net worth of USD 124.3 billion. By any measure, Huang is indisputably one of the wealthiest individuals in the world today.

Following the New York Times article, Nvidia’s stock price dropped from a high of USD 146.30 on 5 December 2024, to a low of USD 141.42 the next day, a decline of 3.3%. While this percentage drop may seem minor for most companies, Nvidia’s market cap, as of 6 December 2024, stands at USD 3.488 trillion. A 3.3% decline translates to a loss of approximately USD 118.9 billion in market value—equivalent to the market capitalization of the 150th largest listed company in the world. Unsurprisingly, some online commentators have attributed Nvidia’s stock drop to the New York Times “exposé” and have speculated that Huang could face greater scrutiny in the future, such as being targeted by the IRS or even fined. Some have even advised other investors to sell Nvidia stock.

In this article, we will provide a detailed analysis of the New York Times report, examine the original materials, explore how Huang managed to avoid $8 billion in estate taxes, and discuss whether these tax avoidance strategies comply with U.S. laws.