The U.S. House of Representatives seems to have a favorite AI stock
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Does Nvidia (NASDAQ:NVDA) have a significant catalyst approaching? Rep. Nancy Pelosi (D-CA) seems to think so. The former Speaker of the House of Representatives recently doubled down on NVDA stock. According to data from Quiver Quantitative, she purchased 10,000 shares on July 26 totaling a value ranging between $1 million and $5 million.
Well-known for her trading habits, Pelosi appears to be bullish on artificial intelligence (AI), but only on some companies in the space. She also recently offloaded some of her Microsoft (NASDAQ:MSFT) holdings as the company faces cloud computing challenges and high trading volatility.
Pelosi Is Betting Big on NVDA Stock
The former House Speaker is such a prolific investor that “Nancy Pelosi stocks” has become its own category among news outlets. Most recently, Pelosi has been focused on AI.
Earlier this summer, Pelosi increased her NVDA stock holdings while also purchasing Broadcom (NASDAQ:AVGO). Specifically, she bought “20 call options with a strike price of $800 that expire on June 20, 2025.” Around the same time, Pelosi offloaded 2,500 shares of Tesla (NASDAQ:TSLA) stock as well.
After several days of struggling, NVDA stock is back in the green today. This is most likely due more to positive market momentum than news of Pelosi’s trade. But that doesn’t mean investors should disregard this development.
Pelosi isn’t the only politician who has bought Nvidia this month, either. Quiver Quantitative’s dashboard also shows that Rep. Josh Gottheimer (D-NJ) and Morgan McGarvey (D-KY) have purchased shares in July 2024.
According to Quiver Quantitative, Pelosi has made 170 trades to date with 65% of her activity centering around the information technology sector. While she has been active in the market since 1987, she did more trading in 2021 than in any other recent year. The platform estimates that NVDA stock comprises only 2% of her portfolio, despite multiple purchases.
Why It Matters
NVDA stock has certainly struggled lately, falling 5% over the past month. But Pelosi doesn’t seem at all deterred by this, clearly seeing Nvidia’s declines as an opportunity to acquire discounted shares before they rise again. Many financial experts share this perspective. Out of 41 Wall Street analysts on TipRanks, 37 rate NVDA as a buy.
There’s plenty of reason for this type of optimism, too. As InvestorPlace contributor Dmytro Spilka notes:
“Nvidia has retained a close focus on machine learning and, in particular, its deep learning subset. The firm has developed its own AI platform for developers with GPU-accelerated deep learning frameworks to help create digital neural networks for businesses without prior GPU programming.”
All this suggests that Nvidia is already back on track toward growth after a temporary downturn. Pelosi and other politicians have only made it clear that they believe NVDA stock has significant growth potential.
On the date of publication, Samuel O’Brient held a LONG position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.