In a move that’s garnering attention, former House Speaker Nancy Pelosi and her husband, a venture capitalist, have plunged back into investing in Nvidia, a leading AI software company.
This decision comes despite their previous divestment from Nvidia amidst heightened scrutiny over congressional stock trading.
Congressional Trades Under the Spotlight
According to Congresstrading, a platform monitoring stock trades by Capitol Hill lawmakers, Pelosi, a San Francisco Democrat and active congresswoman, purchased 50 call options of Nvidia, each with a strike price of $120 and an expiration date of December 20, 2024.
The transaction, reportedly amounting to $2 million, was executed last month, as indicated by the news site Unusual Whales. The disclosure form lists the transaction value between $1 million and $5 million.
Strategic Timing of Disclosure
Congresstrading pointed out on Twitter: “Pelosi bet millions on $NVDA in November using call options. Using a deceptive tactic, she purposely disclosed this on the Friday before Christmas weekend to avoid media coverage.”
Pelosi, at 83, had previously faced criticism during her tenure as House Speaker for not supporting legislation to prevent Congress members and their spouses from trading stocks in regulated companies.
Nvidia’s Market Position
Nvidia, headquartered in Santa Clara, California, and listed on the Nasdaq index, concluded trading last Friday at 488.30, with markets resuming post-Christmas break.
Pelosi’s Investment Approach
Financial experts interpret the Pelosis’ investment as a strong positive outlook on Nvidia.
Justin Rush, a financial planner at Nemes Rush, explained the nature of a call option to The Post: “This grants the holder the right, but not the obligation, to buy a specific quantity of an underlying asset at a predetermined price within a specified time frame.”
“It’s advantageous when expecting the asset’s value to rise, allowing purchase at a lower, pre-set cost.”
The Pelosi Portfolio
Paul Pelosi is a well-known trader, and the couple’s net worth reportedly exceeds $140 million. They’ve earned significant profits from call options on major stocks like Google, Salesforce, Roblox, and Disney.
In a notable trade last July, they sold 25,000 Nvidia shares at an average of $165.05 each, totaling $4.125 million.
However, financial news site Benzinga reported a loss of $341,365 on this trade. Additionally, the couple sold 50 Nvidia call options for a loss of $361,476.
Market Movements and Legislative Influence
The timing of their trades had previously drawn attention, particularly as Nvidia’s stock rose ahead of Congress’s vote on the CHIPS Act, a Biden administration initiative to boost domestic semiconductor production.
Nvidia, a semiconductor manufacturer, was expected to benefit from this legislation. Pelosi was a public supporter of the CHIPS Act.
A Missed Opportunity?
Had the Pelosis retained their 25,000 Nvidia shares, their value today would exceed $12.2 million, representing a profit of over $8 million, given the stock’s nearly 200% surge.
This realization underscores the volatility and unpredictability of stock market investments, even for seasoned investors like the Pelosis.