If You Had Invested $1,000 in Nvidia When Nancy Pelosi First Invested, Here's How Much You Would Have Now

Nancy Pelosi, the former Speaker of the House, has been known for making high-profile stock trades that have garnered significant attention. While some of her investments have sparked controversy, others have led to impressive returns. One notable trade is her investment in Nvidia (NVDA), a leading player in the semiconductor and artificial intelligence space.

Pelosi's Nvidia Trade: A Look at the Details

On June 3, 2021, Nancy Pelosi purchased 50 call options on Nvidia, with a strike price of $400. According to the disclosure filed on July 2, 2021, the total value of the trade was between $1 million and $5 million. At the time of Pelosi's trade, Nvidia's stock was experiencing strong momentum, driven by demand in gaming, artificial intelligence, and data centers.

The price of Nvidia stock on the day of her trade was around $16.9 (adjusted for stock splits). Fast forward to the present, and Nvidia has experienced explosive growth. As of 6th September 2024, Nvidia stock is trading at over $102 per share, a significant increase since Pelosi's trade.

The Returns: From $1,000 to a Potential Fortune

If you had invested $1,000 in Nvidia on the same day Pelosi made her call option purchase, your investment would have appreciated substantially. Let's break down the math:

• Purchase Date (June 3, 2021): Nvidia stock was priced at around $16.9 per share.
• September 2024 Stock Price: Nvidia's stock price is now at $102 per share, reflecting an increase of about 503%.

Here's how your $1,000 investment would have fared:

• Initial Investment: $1,000
• Shares Purchased at $16.9 per share: 59 shares
• Current Value of Nvidia Stock (at $520 per share): 59 shares x $102 = $6,018

Thus, a $1,000 investment in Nvidia on June 3, 2021, would be worth approximately $6,018 today, reflecting a 503% return on investment. This outpaces the broader market by a significant margin, as the S&P 500 increased by just 29% during the same period.

Pelosi's Other High-Profile Trades

Nancy Pelosi's Nvidia trade may be well-known, but it is far from her only high-profile investment. Over the years, Pelosi has frequently traded major tech stocks, including Apple (AAPL), Tesla (TSLA), Alphabet (GOOGL), and Microsoft (MSFT). Notably, her December 2020 Tesla call options purchase came just before the stock's inclusion in the S&P 500, leading to significant gains. Despite accusations that her trades benefit from non-public information, Pelosi has maintained that her investments are managed by a third-party, deflecting concerns about potential conflicts of interest.

The Impact of Pelosi's Trades on Public Perception

Nancy Pelosi's stock trading has raised concerns about the potential for conflicts of interest among lawmakers. While it's legal for members of Congress to trade stocks, critics argue that they may have access to information that gives them an unfair advantage over ordinary investors. In fact, Pelosi's trades—along with those of other high-profile politicians—have inspired discussions about whether stricter rules should be put in place to regulate stock trading by lawmakers.

Conclusion: Should You Follow in Pelosi's Footsteps?

If you had followed Nancy Pelosi's investment in Nvidia in June 2021, you would have seen substantial returns. Pelosi's high-profile stock trades have sparked debates about ethics and fairness, but for those who followed her Nvidia trade, the results have been undeniably lucrative.

 

On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.