Towards the end of last year, Nancy Pelosi, a U.S. Representative, disclosed a move to snag some call options in NVIDIA Corporation (NASDAQ:NVDA).
The AI Boom
Following a stunning surge in the stock, driven by the rapid adoption of AI and stellar financial performances from the company, Pelosi is reportedly enjoying a hefty profit from her savvy investment.
Pelosi’s NVIDIA Bet
In a conversation with Investing.com, Chris Josephs, who co-founded Autopilot and tracks Pelosi’s trades via @PelosiTracker_ on X (previously Twitter), shed light on the significant NVIDIA bet made on November 22, 2023.
Since the buy, NVIDIA’s stock has jumped 63%.
Ethical Concerns Raised
Josephs criticized the ethical implications, arguing, “From an ethical perspective, I believe it is extremely harmful for politicians to trade individual stocks. There are numerous jobs out there that don’t allow employees from trading, yet our most powerful [A]mericans can.”
Trading Away Trust?
“It creates distrust in society which inevitably erodes the longer-term trust in our institutions,” he continued. “They shouldn’t be allowed to do it. We started Autopilot as the first way to automatically copy their trades as a way to bring more awareness to the cause.”
Broader Political Investments
Josephs expanded his scrutiny to include a broader array of politicians investing in Nvidia shares, such as Markwayne Mullin, David Kustoff, and others. He specifically called attention to Senator Mullin’s $30,000 investment in Badger Meter Inc, just as the EPA mandated upgrades to water-automated systems—a sector Mullin oversees in the Senate.
Sketchy Investments
Josephs expressed concern over the apparent conflict of interest, labeling such investments as “sketchy” given their committee positions.
Public Reaction to Political Trades
He also pointed out Pelosi’s recent investment in Palo Alto Networks, which saw a notable stock jump the same day it was disclosed, suggesting a growing public awareness and reaction to these political trades.
Strategic Stock Moves
Recent filings reveal Pelosi’s strategic moves in the stock market, notably her acquisition of 70 Palo Alto Networks call options, split across two dates in February 2024, with an investment of around $1.1 million.
Earnings vs. Investment Returns
Given her reported annual salary of $223,500—a figure that once positioned her as Congress’s top earner—this single NVIDIA option trade’s return significantly outstripped her yearly earnings, highlighting the lucrative side of her stock portfolio endeavors.
AI and Big Tech Investments
Pelosi’s financial engagements extend into the realms of AI and big tech, with Microsoft and Apple standing out as her major stakes. Despite the opacity of her full investment scale, Josephs notes an impressive annual portfolio uptick of 12%.
A Year of Gains
Nvidia’s stock has been on a meteoric rise over the past year, soaring over 240% and hitting an all-time high of more than $823 per share recently. The momentum hasn’t slowed, with the stock jumping nearly 61% this year alone, closing a recent session at $791.20 per share, pushing its market cap to an eye-watering $1.98 trillion.
A $1,400 Target
The enthusiasm around Nvidia was further fueled by Rosenblatt’s decision to increase its price target to a market-leading $1,400, citing the company’s earnings outperformance and the pivotal shift towards accelerated computing.
Pelosi’s Position
Amid this backdrop, Nancy Pelosi’s significant Nvidia options trade has drawn attention, though her office has yet to comment on the matter.
Paul and Nancy
Beyond her notable political career, Nancy Pelosi, together with her husband, Paul Pelosi, has significantly bolstered their financial portfolio through savvy investments and ownership of valuable real estate.
A Profitable Partnership
The bulk of her wealth is attributed to her husband’s business acumen, especially his firm Financial Leasing Services, known for profitable investments in giants like Facebook, Apple, and Disney. A 2021 investigation by Glenn Greenwald highlighted the Pelosis’ active engagement in trading tech stocks, amounting to over $33 million within two years.
Property Portfolio
Nancy Pelosi and her husband share ownership of several impressive properties, including a picturesque estate in Northern California’s renowned wine country, a residence in San Francisco, and a condominium in Washington, D.C.
This diverse portfolio not only showcases their taste for fine living but also their strategic investments in some of the country’s most desirable locations.
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