Nvidia in focus as Sec. Bessent rules out stake ahead of earnings

[Nvidia Corporation building in Taipei, Taiwan.]
BING-JHEN HONG

Ahead of its quarterly earnings report, U.S. Treasury Secretary Scott Bessent ruled out a stake in Nvidia (NASDAQ:NVDA [https://seekingalpha.com/symbol/NVDA]) on Wednesday.

A stake in the technology giant is likely “not on the table,” Bessent said in an interview on Fox Business on Wednesday. Bessent added that the company does not need financial support.

Bessent's comments come after the Trump administration recently took a stake in Intel (INTC [https://seekingalpha.com/symbol/INTC]) in an effort [https://seekingalpha.com/news/4488523-intel-confirms-massive-11_1b-investment-by-us-government] to boost the beleaguered chipmaker. The move has been met with much skepticism from investors [https://seekingalpha.com/news/4489195-seeking-alpha-subscribers-us-government-stake-intel], especially after Intel disclosed that the new stake increased [https://seekingalpha.com/news/4488912-intel-rises-even-as-it-says-new-us-stake-ups-risks] its risks.

The 63-year-old Bessent's comments also follow those of Kevin Hassett, director of the National Economic Council, who said in an interview on Monday that he expects more transactions in the semiconductor industry, as well as other industries. Hassett, who is in contention to replace Jerome Powell as Chairman of the Federal Reserve, added [https://seekingalpha.com/news/4488716-the-us-stake-in-intel-may-be-the-beginning-of-a-us-sovereign-wealth-fund-hassett-says] that the Intel stake may form the base of a U.S. sovereign wealth fund.

Nvidia has been at the forefront of the artificial intelligence revolution, as its GPUs have seen unprecedented demand [https://seekingalpha.com/news/4488658-nvidia-in-focus-as-wedbush-says-demand-to-supply-is-10-1-ratio-ahead-of-earnings]. A consensus of analysts expect the company to earn $1.01 per share on $46.13B in revenue when it reports [https://seekingalpha.com/symbol/NVDA/earnings/estimates?period=quarterly] after the close of trading.

Traders are expecting a significant move in the stock after the report, as the options market is implying a $270B move in the company's market cap, according to data compiled by Bloomberg.

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