Congressional Stock-Trading Ban Advocate Ro Khanna, Spouse Sold Nvidia Shares At Peak Before Spy Scandal Emerged

Democrat Khanna also serves on the House committee that examines security competition with China.

• Khanna’s spouse sold Nvidia shares in early September and October, according to Capitol Trades
• NVDA has fallen sharply since hitting an all-time high on Oct. 6.
• Khanna previously sold shares in May, just around the time NVDA hit its previous peak.

A Democratic official may have landed on the right side of the ongoing Nvidia scandal. Recent trades by Rep. Ro Khanna (D-CA) showed that he and his spouse trimmed his Nvidia position around the stock’s peak, according to platforms tracking stock moves by members of Congress.

Khanna’s spouse made two sales, each with between $1,000 and $15,000 on Sept. 4 and Oct. 7, according to Capitol Trades. Nvidia shares hit an all-time high on Oct. 6 and have fallen sharply this week after Nvidia CEO Jensen Huang’s admission of an affair with a suspected Chinese spy plunged the company into an unprecedented crisis.

Khanna is the U.S. Representative for California’s 17th Congressional District and has advocated barring members of Congress from trading individual stocks while in office.

Khanna also serves on the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, which examines security competition with China.

Earlier this year, Khanna sold two lots of Nvidia stock, each between $1,000 and $15,000, at the start and end of May. Nvidia stock price hit its second-highest level on May 14. To be sure, Khanna acquired Nvidia shares between June and September. 

The Nvidia Fallout

The New York ​Times reported last month that Huang had a relationship with former Megaspeed executive Alice Huang, whom U.S. authorities investigated and concluded was a Chinese intelligence asset. 

Huang admitted to an affair on Sunday without offering details. Nvidia launched an investigation, and reports speculate that the company’s board is considering removing him as CEO.

Nvidia’s ​board said earlier this week that it has "no reason to believe" U.S. national security or company secrets were compromised. Beijing has denied any involvement in the matter. 

NVDA shares slid 7% this week through Wednesday’s close and another 8% in overnight trading after media reports speculated about a second affair involving Huang and the possibility of his ouster.

Retail Sentiment For NVDA

Still, the retail sentiment for NVDA on Stocktwits climbed even higher in the ‘extremely bullish’ zone as of early Thursday. 

“$NVDA All jokes aside, Nvidia hasn’t stopped being what it is, hasn’t stopped making the money it makes, and hasn’t lost the reputation it has,” a trader said.

“This is a personal situation of a highly accomplished man who simply lost his common sense… Once the dust settles, Nvidia will go back to being what it has always been: a great company.”

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