Nancy Pelosi’s husband splurges on chip stocks as Biden pushes huge subsidies
While the Biden administration is considering providing subsidies to the semiconductor industry, former House Speaker Nancy Pelosi's husband has purchased stock options in the same company that his wife's party is propping up.
This transaction occurred at the same time that the Biden administration was considering providing subsidies, as The Daily Caller reported.
According to required financial disclosures, on Nov. 22, Paul Pelosi made a purchase of call options with a strike price of $120.
These options have an expiration date of the end of 2024 and had a purchase price of between $1 million and $5 million.
The Administration's Actions
The CHIPS and Science Act, which includes $52 billion in stimulus for the industry to bolster American production in competition with Chinese technology, could soon provide subsidies and tax credits to a number of chip companies, including Nvidia, a leading American semiconductor manufacturer.
This could be one of the many companies that will soon receive these benefits when the Biden administration secures passage of the legislation.
Paul Pelosi had already purchased up to $5 million worth of Nvidia stock in June 2022, which was the month before a vote on the subsidy measure was scheduled to take place in the Senate.
BREAKING: Nancy Pelosi and her husband have purchased up to $5 million of Nvidia, $NVDA, call options with a strike price of $120 and expiration date of 12/20/24.
You read that right.
They purchased leveraged bets over a company they legislate.
— unusual_whales (@unusual_whales) December 22, 2023
The suspiciously fortuitous timing of the exchange, according to ethics expert Craig Holman, "raises the specter" that Pelosi would have access to confidential material. Holman emphasized his concern through his statement.
Gina Raimondo, the secretary of Commerce, stated on Dec. 11 that the Biden administration was in conversations with Nvidia to identify the types of chips that the business is able to ship to China.
Reuters reported that these discussions have already taken place. However, Raimondo highlighted that the company is unable to sell its most advanced processors but that it should be permitted to sell chips that meet more fundamental requirements.
In an effort to prevent critical technology from falling into the hands of China, the Biden administration imposed sanctions on the Chinese chip sector back in October 2022.
These restrictions included blacklisting a number of the country's semiconductor companies from cooperating with corporations based in the United States.
On November 21, the day before the trade made by Pelosi, Nvidia announced its results for the third quarter. The company reported a revenue gain of 34% compared to the previous quarter and a year-over-year increase of 206%.