Temperatures are cooling — and so is enthusiasm for AI stocks for some inside the Beltway.
With election season in full swing, politicians are focused on their election campaigns, stumping for other candidates, legislative duties, and other responsibilities.
This doesn’t mean they’re ignoring their investment portfolios, though. In fact, the same enthusiasm for artificial intelligence (AI) that is sweeping through the market is also visible among those in Congress.
But not everyone is bullish on AI stocks. Several politicians have a bearish perspective, choosing to click the sell button on top AI names like Broadcom (AVGO 0.46%), Lam Research (LRCX 3.39%), and Microsoft (MSFT 0.68%).
Representatives from both red and blue states are united in their skepticism of Broadcom
Semiconductor specialist Broadcom has garnered the attention of bears on both sides of the aisle during the past month or so. In September, Rep. Josh Gottheimer, a Democrat from New Jersey, sold the stock in several transactions, each valued between $1,001 and $15,000. Similarly, Rep. John James, a Republican from Michigan, sold Broadcom in September in a transaction valued between $1,001 and $15,000, according to regulatory filings.
It’s not certain why Gottheimer and James decided to sell the stock, but it’s possible they were nervous about the market’s expectations for the company’s third-quarter 2024 results, reported on Sept. 6. If so, Gottheimer and James would have benefited from standing pat. Broadcom reported year-over-year growth in several metrics, including revenue, net income, and free cash flow. The stock soared in the subsequent weeks.
Bears are balking at Lam Research, but bulls are picking up shares, too
Another semiconductor stock that made its way onto the sell screens of Gottheimer and James recently is Lam Research. Both sold shares of Lam Research, a company specializing in wafer-processing semiconductor manufacturing equipment, in September transactions valued between $1,001 and $15,000. And they weren’t alone. In August, Rep. Jonathan Jackson, a Democrat from Illinois, sold shares of Lam in a more sizable transaction valued between $15,001 and $50,000.
It’s worth noting, though, that despite the apparent pessimism for Lam, there is also some optimism inside the Beltway. Rep. Marjorie Taylor Greene, a Georgia Republican, has been bullish on the AI stock, buying shares on Sept. 19 and Oct. 3. Both of Greene’s transactions were valued between $1,001 and $15,000.
Billionaires have been buying Microsoft stock
Besides semiconductor stocks, software stalwart Microsoft has found considerable bearish attention from politicians lately.
| Politician | Date of Trade | Size of Transaction |
|---|---|---|
| Rep. Josh Gottheimer (D- NJ) | Sept. 11 | $1,001 to $15,000 |
| Rep. Bill Keating (D -MA) | Sept. 10 | $1,001 to $15,000 |
| Rep. John James (R-MI) | Sept. 3 | $15,001 to $50,000 |
| Rep. Suzan DelBene (D-WA) | Aug. 30 | $100,001 to $250,000 |
| Rep. Scott Franklin (R-FL) | Aug. 5 | $15,001 to $50,000 |
Data source: Capitoltrades.com.
It’s worth noting that while a variety of politicians have decided to move Microsoft shares out of their portfolios, the stock remained on the buy list of several billionaires and hedge funds in the second quarter of 2024. Bridgewater Associates, founded by Ray Dalio, picked up shares of Microsoft during the second quarter. Philippe Laffont of Coatue Management also loaded up on Microsoft stock.
The company reaffirmed its dedication to rewarding shareholders on Sept. 16, when it announced a 10% increase to its quarterly dividend as well as news that the board had authorized a new share repurchase program of as much as $60 billion.
Should you follow the pols and sell these stocks now?
Monitoring the stock moves of politicians is a great way to complement the other tactics you might use when investing. However, blindly following the stock transactions of politicians is anything but wise.
Although several politicians might have unloaded Broadcom, Lam Research, and Microsoft, all three stocks are industry leaders that are worthy considerations for investors looking to expand their AI exposure.
Those committed to semiconductor stocks would be wise to dig further into both Broadcom and Lam Research, while Microsoft will appeal to investors more interested in a software company.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Lam Research and Microsoft. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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