U.S. politicians are no strangers to stock market success, and few have failed to take advantage of the big tech sector boom that has been ongoing since the pandemic-induced lockdowns and reinvigorated by the artificial intelligence (AI) boom.
The most famous of the congressional traders – and one who found immense success with a 2023 bet on the semiconductor giant Nvidia (NASDAQ: NVDA) – is without a doubt, Representative Nancy Pelosi.
By late February 2024, another Congressman – Michael Guest, a Republican representing Mississippi’s 3rd congressional district – took a page out of the Pelosi book and made a very well-timed investment in the chipmaker Nvidia.
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Representative Guest returns 31% on Nvidia investment
According to a Wednesday filing, Michael Guest made a purchase of NVDA shares on February 20, as a brief downturn for the stock was starting at a price of approximately $694.52.
Nvidia’s stock has since surged significantly to the press time of $908.88, meaning that Representative Guest has returned 30.86% in three weeks – approximately $215 per share bought.
What makes the trade particularly suspicious is that it was made in a mere three days before Nvidia made a bombshell earnings report that sent its stock back toward the stratosphere. While the timing doesn’t necessarily indicate insider trading, the move is nonetheless worrying as Guest is the Chair of the Congres Ethics Committee.
Admittedly, Guest’s investments – reported at between $1,000 and $15,000 – was relatively small, especially compared to the millions worth of call options acquired by Nancy Pelosi which have already made her an estimated ten times her annual salary.
Nvidia stock price chart
Earlier in March, Nvidia’s stock gave investors and traders a scare as the stock declined approximately 10% within two days, but the semiconductor giant has since mostly recovered and continued its strong 2024 trend. Indeed, year-to-date (YTD), NVDA shares are 88.69% in the green.
In the longer-term, Nvidia’s performance becomes even more impressive as the chipmaker recorded a price increase of 277.71% in the last 52 weeks. The short-term figures a slightly more mixed.
While the latest 30 days of trading saw NVDA stock surge 22.99%, the weekly chart – particularly due to the brief yet severe downturn – is far more modest, with a growth of 0.81%.
Finally, Nvidia was 1.12% in the red at the latest close on Wednesday, March 13, at $908.88 and is a further 0.65% in the red at press time in Thursday’s premarket.
Congress returns up to 240% on stock trades
Much like Nvidia is far from the only well-performing stock in 2024, and Nancy Pelosi is far from the only – and far from the most successful – trader in Congress.
In 2023, for example, New York’s 26th congressional district representative – Democrat Brian Higgins – recorded staggering returns amounting to 238.9%, while this year’s most successful portfolio – so far – belongs to Dan Mouser and the trading bot that mimics his trades returned nearly 120% by March 5.
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