NVIDIA Draws Attention To Pelosi's Stock Picks
BlackBull Markets | Sep 05, 2022 08:00PM ET
Stock investments by US House Speaker Nancy Pelosi and her husband, venture capitalist Paul Pelosi, are again in the spotlight after shares of NVIDIA (NASDAQ:NVDA) declined again after the pair reduced their interest in the semiconductor company.
Pelosi is the first female Speaker of the US House of Representatives and second in line to the presidency (after Vice President Kamala Harris). Considering her very public position, she and her husband's financial matters always attract attention.
In July, the couple sold 25,000 NVIDIA shares in a transaction valued between $1 million and $5 million. The shares were sold at $165.05 apiece, reflecting a loss of $340,000. On Sept. 1, NVIDIA fell 18.3%, and if not for the July transaction, the Pelosis would have lost $753,000, the news platform added.
While the decision may have just been due to good investor instinct, it is being marred by controversies. Filing a bill in Congress and visiting Taiwan make it harder to brush some of the controversies under the rug.
h2 Semiconductor Boost/h2Paul Pelosi invested in NVIDIA on Jun. 17 with the exercise of 200 call options for shares in the company for $100 per share. The transaction was also valued between $1 million and $5 million.
It came at a time when the CHIPS Act was tabled for approval in Congress. The bill, which President Biden signed into law in August, aims to strengthen domestic semiconductor manufacturing, design, and research.
According to TechRepublic, the law will provide $52 billion for semiconductor manufacturing incentives and research investments and a 25% investment tax credit for semiconductor manufacturing, which would greatly help companies like NVIDIA.
New York Post columnist Charles Gasparino labeled the investment the "latest home run" for Pelosi, who Gasparino wrote "has been killing it in the stock market in recent years," winning with companies that benefit from governmental legislation.
Congresswoman Pelosi supported the CHIPS Act. Following the July sale, people have started singing a different tune that the transaction may have been done to alleviate conflict of interest concerns.
Or it could be another smart investment move. NVIDIA US government's restriction of the company's sales to China.
Another event connecting the House Speaker to the semiconductor industry is her visit to Taiwan on Aug. 2. The visit, which according to BBC, was "shares in companies including:
- AllianceBernstein (NYSE:AB),
- Alphabet Class A (NASDAQ:GOOGL)) and Alphabet Class C (NASDAQ:GOOG),
- Amazon.com (NASDAQ:AMZN),
- American Express (NYSE:AXP),
- Apple (NASDAQ:AAPL),
- Micron Technology (NASDAQ:MU),
- Microsoft (NASDAQ:MSFT),
- PayPal Holdings (NASDAQ:PYPL),
- Salesforce.com (NYSE:CRM),
- Tesla (NASDAQ:TSLA), Visa (NYSE:V),
- Walt Disney (NYSE:DIS),
- and Warner Bros. Discovery Series A (NASDAQ:WBD).
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Speaker Pelosi's involvement in these companies prompted legislation prohibiting US Congress members from trading stocks. After months of resistance, Pelosi dropped opposition to the proposed legislation.
Insider included the House Speaker in its never the case .
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