Nvidia CEO Jensen Huang has expressed support for a proposed California tax measure that would impose a one-time 5% tax on residents with net worth of at least $1 billion. According to reports from CBS News, Huang stated he would not object to paying as much as $8 billion in taxes over five years if the measure is approved by California voters this fall. His fortune is estimated at $184 billion, making him one of the wealthiest individuals in the state.
In an interview with CBS News correspondent Jo Ling Kent, Huang described his perspective on the tax burden. As reported by CBS News, he stated, "The fact that I can afford to pay $8 billion in taxes over five years is a privilege. I feel it's a privilege. It's a responsibility. And nothing would give me more joy than to be able to pay even more taxes." Huang emphasized his willingness to pay additional taxes, stating he is not afraid of paying taxes but is "just afraid of being poor."
Huang's commitment to employee compensation reflects his broader philosophy of rewarding workers generously as AI-driven growth generates unprecedented wealth. According to CBS News, he stated, "Instead of paying people as little as possible to get their work, I try to pay people as much as possible." This approach comes as chipmakers see their businesses expand multifold, fueling calls from workers for a larger share of the industry's booming profits.
The comments come amid significant labor developments in the semiconductor industry, where workers at major suppliers are securing substantial compensation packages. In South Korea, employees at Nvidia's key memory suppliers Samsung Electronics and SK Hynix recently secured richer compensation packages after contentious labor negotiations. At Samsung, workers approved a deal in May that averted an 18-day strike, including an average 6.2% wage increase and a new semiconductor performance bonus worth 10.5% of business performance earnings. SK Hynix workers also pushed back against an initial agreement in August, after which the union approved a revised deal last week that increased the cash portion of profit-sharing bonuses to 50% from 40%, while retaining a 6.3% wage increase.
Nvidia shares have been broadly range-bound over the past month, up only about 0.4% from August 19 to September 18. On Stocktwits, retail sentiment for NVDA remained 'bearish,' unchanged over the past two weeks, with traders looking ahead to bilateral talks during Chinese President Xi Jinping's visit for trading cues. Despite current market sentiment, traders remain optimistic about potential developments, with one trader writing, "$NVDA I think we will have some good news by Wednesday that will really push this higher."
