Jensen and Lori Huang Jointly Control $135 Billion Nvidia Stake; Trust Structure May Stabilize Shares
SEC filings show Jensen and Lori Huang jointly own ~800 million Nvidia shares via complex trusts. This arrangement adds uncertainty but restricts rapid selling, potentially stabilizing the stock after Huang's resignation.
According to U.S. Securities and Exchange Commission (SEC) filings, former Nvidia CEO Jensen Huang and his wife, Lori Huang, jointly own approximately 800 million shares of the company, valued at roughly $135 billion. This substantial holding is not directly controlled by Huang alone but is managed through a complex web of trusts and limited liability companies (LLCs) established for tax and estate planning purposes. Huang directly owns about 70 million shares, valued at approximately $12 billion.
While owning company stock through trusts is common among tech founders, equal joint control with a spouse over such a large stake is less typical, tax experts note. As reported by CNBC, the Huangs are co-trustees of the "Jen-Hsun and Lori Huang Living Trust," created in 1995, which holds about 530 million shares. They also co-manage two irrevocable trusts: the "Huang 2012 Irrevocable Trust" (holding 31.4 million shares) and the "Huang Irrevocable Remainder Trust" (holding 109 million shares). Additionally, about 135 million shares are held by LLCs where the living trust is the sole member.
For investors, this equity structure presents a dual impact amidst Huang's sudden resignation. On one hand, it introduces uncertainty regarding ownership and control. On the other, it may serve as a stabilizer for the share price. Legal experts indicate that the terms of irrevocable trusts are difficult to change, and since both Jensen and Lori Huang are co-trustees, neither can easily remove or sell the Nvidia shares held within these trusts. This implies that even in the event of divorce or other personal changes, these core assets are unlikely to be rapidly liquidated into the market.
In contrast, revocable living trusts typically allow for more flexible asset disposition, though executive stock agreements often impose strict limits on large-scale sales. Kathleen Martone, a partner at Varnum LLP, noted that shares in a living trust can usually be sold or divided relatively easily in case of divorce, similar to a "joint checking account." However, irrevocable trusts are designed for asset protection and tax benefits, maintaining independence from creditors, including divorcing spouses. Consequently, while Huang's departure has triggered market volatility, the locked-in structure of his family wealth may reduce insider selling pressure in the long term.