In recent news, Nvidia Corporation (NVDA:US), a prominent technology giant in the semiconductor industry experienced a significant surge in its valuation during 2023. Following its impressive quarterly financial results and higher-than-expected guidance, the company's stock reached all-time highs. This remarkable growth propelled Nvidia's market capitalization to surpass the one trillion mark.
One of the most frequent stock traders in Congress recently made a wise move by selling shares of Nvidia Corporation. Known for his active involvement in trading stocks, Congressman Ro Khanna sold his shares of Nvidia after the company's valuation soared. Trades by the lawmaker were valued between $1,000 and $15,000 and were executed on May 25 and May 31, during which Nvidia shares were trading between $366.35 - $394.80 and between $378.22 - $402.95, respectively.
Nvidia's stock experienced a slight dip, trading between $298.06 - $302.10 on May 24, just before the company reported its quarterly results. However, the stock rallied and opened at $385.23 on May 25 following the positive earnings report. Although Khanna may have missed out on potential additional profits by not holding onto his Nvidia shares, he fared better than his fellow Congress member Nancy Pelosi.
Former Speaker of the House Nancy Pelosi is also known for her active involvement in stock trading, often facilitated by her venture capitalist husband Paul Pelosi. However, Pelosi's trades have been a center of scrutiny for quite a lot of time due to her congressional position and the potential access to insider information.
Previously, Pelosi and her husband had announced their ownership of 25,000 shares in Nvidia Corporation. Subsequently, they sold these shares amidst public scrutiny surrounding their holdings. In July 2022, the Pelosis reported a loss on Nvidia shares, ranging between $1 million to $5 million. Pelosi faced public criticism for holding Nvidia shares while publicly supporting the CHIPS Act vote in Congress, a move perceived as potentially beneficial for the company.
Experts raised concerns about the transparency of the Pelosis' trade disclosure, suggesting that the sale may have been influenced by public pressure. By selling their Nvidia shares, the couple managed to avoid a potential loss of nearly $753,000. However, in the subsequent months, Nvidia shares experienced a significant surge due to increased interest in artificial intelligence. Based on the trading price of $430.78 on June 15, the 25,000 shares sold by the Pelosis would then be valued at around $10,769,500. Hence, the couple missed out on a potential profit of over $6 million.
It is worth noting that Congressman Khanna's previous involvement in trading stocks related to rival companies of TikTok had also drawn attention. Nevertheless, analysts foresee a positive future for Nvidia shares due to the increasing interest in artificial intelligence and the company's improved guidance.