Navigate the US chipmaking landscape following the Pelosis

Navigate the US chipmaking landscape following the Pelosis

08 September 2022 from Carlsquare

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

Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

NVIDIA, weekly five-year chart, USD

Source: Infront and Carlsquare. Note: Past performance is not a reliable indicator of future results.

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

Important notice

 
This information is neither an investment advice nor an investment or investment strategy recommendation, but advertisement. The complete information on the trading products (securities) mentioned herein, in particular the structure and risks associated with an investment, are described in the base prospectus, together with any supplements, as well as the final terms. The base prospectus and final terms constitute the solely binding sales documents for the securities and are available under the product links. It is recommended that potential investors read these documents before making any investment decision. The documents and the key information document are published on the website of the issuer, Vontobel Financial Products GmbH, Bockenheimer Landstrasse 24, 60323 Frankfurt am Main, Germany, on prospectus.vontobel.com and are available from the issuer free of charge. The approval of the prospectus should not be understood as an endorsement of the securities. The securities are products that are not simple and may be difficult to understand. This information includes or relates to figures of past performance. Past performance is not a reliable indicator of future results.

01/02/2023 13:23:27

 

Write a Comment

 

  

 

  

 

* Required fields need to be filled in