NVDA CEO Huang Backs California Wealth Tax, Calls It a Privilege

NVIDIA CEO Jensen Huang said on September 22 that paying California’s proposed billionaire wealth tax would be “a privilege” and that “nothing would give me more joy” than to pay more taxes. Huang, whose net worth Forbes estimates at $197 billion, stated he would accept an $8 billion tax bill over five years if Proposition 40 passes on November 3. His public backing stands out as most tech billionaires oppose the measure.

What Proposition 40 would tax

Proposition 40 imposes a one-time 5% levy on the net wealth of any California billionaire as of January 1, 2026. The state is home to roughly 260 billionaires, the most of any U.S. state. The measure could raise more than $108 billion, primarily for public healthcare but also for education and food assistance programs.

Huang’s tax philosophy differs from peers

During a CBS News interview, Huang rejected the idea that companies should “pay employees as little as possible.” Instead, he emphasized that higher earnings should mean higher taxes. Huang noted NVIDIA plans to pay roughly $80 billion in U.S. federal taxes over the next five years. His position contrasts with Gov. Gavin Newsom and other wealthy Californians who warn the tax could drive billionaires out of state.

Voters split on the measure

A SurveyUSA poll conducted September 2026 found 48% of likely voters support Proposition 40, while 40% oppose it and 12% remain undecided. Support is strongest among voters aged 18 to 34, with nearly two-thirds backing it. Only 35% of voters 65 and older support the tax. The state Democratic Party formally backs the measure, though some leading figures oppose it.

NVDA stock shows strength despite tax debate

NVDA trades at $228.87, up 0.66% on September 23, with a Meyka grade of B+ and a 12-month forecast of $242.53. The RSI stands at 60.06, indicating neutral momentum, while the stock trades near its 50-day average of $214.60. Analyst consensus is Strong Buy, with 25 buy ratings against 2 holds and no sells, suggesting the tax debate has not dented investor confidence in the chip giant.

Final Thoughts

Huang’s public support for California’s wealth tax signals confidence in NVIDIA’s long-term profitability despite the potential $8 billion hit. With Meyka grading the stock B+ and analysts maintaining a Strong Buy consensus, the market views the tax as a manageable cost for a company generating massive cash flow.

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