Nancy Pelosi's Bold Bet on Broadcom: A $1-$5 Million Investment in AI Chipmaker

Nancy Pelosi, a US Congress member, has made a significant investment in Broadcom Inc. (AVGO), a semiconductor and chipmaking company. She exercised 20,000 call options, which translates to a $1-$5 million cash investment. This move is seen as a bullish indicator for Broadcom, as President Trump recently announced a $70 billion investment in the US chip and semiconductor industry, with Broadcom being a prime beneficiary due to its significant US footprint.

U.S. House Representative Nancy Pelosi has exercised 20,000 call options on Broadcom Inc. (NASDAQ: AVGO), according to a disclosure notice filed on June 20, 2025. The options, purchased on June 24, 2024, had a strike price of $80 per share. The transaction value is reported to be between $1,000,001 and $5,000,000 [1].

Broadcom, a global technology company specializing in semiconductor and infrastructure software solutions, has seen its stock price trend downward in recent days. As of July 2, 2025, Broadcom shares are trading at $273.75, down 1.49% from the previous day [2].

Pelosi's investment in Broadcom follows recent developments in the U.S. chip and semiconductor industry. President Trump recently announced a $70 billion investment in the sector, with Broadcom being a prime beneficiary due to its significant U.S. footprint [3].

Analysts have maintained a positive outlook on Broadcom despite the cancellation of its $1 billion microchip facility plans in Spain. J.P. Morgan, for instance, has reiterated an Overweight rating on Broadcom stock, citing strong demand for artificial intelligence (AI) and a robust AI XPU business [4].

However, GuruFocus estimates indicate a potential downside for Broadcom, with a GF Value of $187.96, suggesting a 30.85% downside from the current price of $274.38 [5].

Pelosi's transaction is a notable addition to her recent trading activities, which include a purchase in Broadcom AVGO valued between $1,000,001 and $5,000,000 on June 20, 2025 [2]. This move could be seen as a bullish indicator for Broadcom, signaling that Pelosi expects the stock to rise.

References:
[1] https://finance.yahoo.com/news/nancy-pelosi-exercises-call-options-135759268.html
[2] https://www.benzinga.com/insights/government/25/07/46346221/california-rep-nancy-pelosi-bought-over-1-00m-worth-of-broadcom-stock-heres-what-you-should-k
[3] https://www.ainvest.com/news/broadcom-cancels-1-billion-microchip-facility-plans-spain-failed-negotiations-2507/
[4] https://www.gurufocus.com/news/2966510/broadcom-avgo-receives-overweight-rating-from-jp-morgan-amid-strong-ai-demand
[5] https://ca.investing.com/news/analyst-ratings/jpmorgan-reiterates-overweight-rating-on-broadcom-stock-amid-strong-ai-demand-93CH-4094932