Nvidia Corporation’s stock soared to unprecedented heights following the launch of its new desktop graphics processors incorporating artificial intelligence (AI). The chipmaker’s shares experienced a remarkable 6.4% increase on Monday and sustained the momentum into Tuesday, reaching a trading value exceeding $535 per share as of 17:00 GMT. The surge was catalysed by introducing the GeForce RTX 40 SUPER Series, targeting gaming enthusiasts.
In a notable turn of events, former US House Speaker Nancy Pelosi made a significant foray into the market by investing $5 million in call options for Nvidia. This strategic move has captured the attention of investors, particularly given Pelosi’s well-documented success in trading. Adding to the intrigue, Pelosi’s husband, venture capitalist Paul Pelosi, has historical connections with the company.
Earlier revelations from Reuters indicated that Paul Pelosi had divested his Nvidia stock in July, a move seemingly timed before legislative discussions in the House concerning subsidies and tax credits to bolster the US semiconductor industry.
Despite this prior divestment, the Pelosis are again making waves in the market. With Nvidia’s shares witnessing an exceptional surge of 227% this year, Nancy Pelosi has re-entered the arena, acquiring 50 call options with a strike price of $120.
The disclosure of this latest investment comes from the Congresstrading account on X (formerly Twitter), renowned for meticulously tracking the stock trades of lawmakers on Capitol Hill. Financial analysts interpret Pelosis’ Investment in Nvidia as a bullish move for the coming year. Call options give the holder the right, though not the obligation, to purchase a specific quantity of an underlying asset at a predetermined price within a specified timeframe.
Despite past criticism for resisting calls to enact legislation preventing members of Congress and their spouses from trading stocks of companies they regulate, Pelosi and her husband persist as active stock traders. With a reported net worth exceeding $140 million, the Pelosis have previously profited from strategic investments in call options for blue-chip stocks like Google, Salesforce, Roblox, and Disney.
The timing of Pelosi’s recent Nvidia investment has yet to escape notice, with some observers highlighting her decision to disclose the transaction on the Friday before the Christmas weekend, possibly to minimise media coverage.
The continued engagement of Pelosi in stock trading, particularly in companies affected by legislation that the former House speaker can influence, has intensified calls for stringent regulations that would prohibit members of Congress and their spouses from participating in such trading. The recent Investment in Nvidia, coupled with previous controversies, has reignited the debate on the ethical aspects of stock trading by lawmakers.
