Navigate the US chipmaking landscape following the Pelosis
In August, US president Joe Biden signed the CHIPS act to strengthen domestic semiconductor manufacturing and research prospects. The act will boost roughly $52 billion into US chip manufacturing companies and provide the industry with tax breaks.
When the CHIP act was approved in Congress, Paul Pelosi, husband of Congresswoman and spokesperson Nancy Pelosi, invested in NVIDIA on June 17th. The transaction consisted of the exercise of 200 call options for shares in the company at a transaction value of between $1 million and $5 million. Given Nancy Pelosi´s insight into legislation activities, she and her husband’s investments have drawn quite some attention.
In July, the couple reduced their holdings in NVIDIA, reflecting a loss of $340 000. For now, navigating which US chipmakers will come on top is early to say but keeping an eye on where the Pelosis are putting their interest in the sector might offer some guidance on where the act might benefit the most. For now, NVIDIA is still in the scope.
NVIDIA, daily 12-month share price chart, USD
NVIDIA, weekly five-year chart, USD
The full name for abbreviations used in the previous text:
EMA 9: 9-day exponential moving average
Fibonacci: There are several Fibonacci lines used in technical analysis. Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers.
MA20: 20-day moving average
MA50: 50-day moving average
MA100: 100-day moving average
MA200: 200-day moving average
MACD: Moving average convergence divergence
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