## Nancy Pelosi’s Nvidia Investments: A Look at the Former Speaker’s Stock Portfolio Gains
The impressive surge of Nvidia Corporation (NVDA) shares, reaching all-time highs on Monday, has been a boon for many investors, including a notable figure in American politics: former House Speaker Nancy Pelosi. She and her husband, venture capitalist Paul Pelosi, have been actively adding NVDA stock and options to their investment portfolios over the past year.
As a member of Congress, Nancy Pelosi is required to disclose the trades made by herself and her husband. In a December 23, 2023, disclosure, she reported a purchase made before the Christmas holiday. This purchase, executed on November 22, 2023, involved 50 call options in Nvidia with a $120 strike price and an expiration date of December 20, 2024. The disclosure valued the purchase between $1 million and $5 million, with financial data firm Unusual Whales estimating it at $1.8 million.
At the time of the purchase, Nvidia shares traded between $476.90 and $503.35. The call options would have been purchased for around $360 each. However, following Nvidia’s 10-for-1 stock split in June 2024, these options contracts are now 500 call options with a $12 strike price. On Monday, these options traded at $132.05, valuing the Pelosis’ position at $6,602,500. Based on the estimated cost basis of $1.8 million, the Pelosis are now up $4.8 million on this trade from last November.
This options trade wasn’t the only Nvidia investment the Pelosis made over the past year. The former House Speaker also disclosed buying 10,000 NVDA shares on June 26, valued at $1 million to $5 million, and another 10,000 NVDA shares on July 26, valued at $1 million to $5 million. Based on the intraday highs for Nvidia stock on those dates, these purchases would have been worth:
*
June 26:
10,000 shares, $128.12 per share, purchase price $1,281,200, now worth $1,437,100*
July 26:
10,000 shares, $116.20 per share, purchase price $1,162,000, now worth $1,437,100These two purchases are now worth $2.87 million and up at least $430,000, depending on the timing of the purchases.
## Missed Profits and Controversy
While the Pelosis are currently sitting on over $5 million in profits from their Nvidia investments, they could have been sitting on significantly more. In July 2022, they sold 25,000 Nvidia shares at an average price point of $165.05, resulting in a total sale value of $4,126,250. This transaction, made at a loss of $341,365, occurred after Pelosi disclosed buying Nvidia shares ahead of the CHIPS Act, a bill that aimed to benefit semiconductor stocks, attracting scrutiny and raising questions about potential insider trading.
Following the stock split, those 25,000 shares would now be worth $35,927,500. This means the Pelosis missed out on potential profits of $31,801,250 from their sale in July 2022. This situation has fueled further controversy surrounding the Pelosis’ stock trading activities, with critics questioning the timing of their trades and whether they had access to privileged information. Nancy Pelosi maintains that she does not share information on congressional activities with her husband, but these claims have been met with skepticism.
The Pelosis’ Nvidia investments highlight the growing concerns about congressional insider trading. Increased calls to ban Congress members and their spouses from trading have focused on Pelosi, leading to the introduction of a bill known as the PELOSI Act. This legislation aims to address the perceived conflict of interest inherent in congressional stock trading.
With Nvidia shares reaching new all-time highs, the former House Speaker’s investment in the tech giant continues to garner attention and fuel debate about ethical considerations and potential conflicts of interest within the halls of Congress.
