Is Nvidia Stock a High-Risk Play Ahead of the U.S. Election?

As we approach the 2024 U.S. election, Nvidia (NVDA) stock has been on an increasingly volatile ride, leaving investors to wonder each day whether they're in for an exciting adventure or a nerve-wracking drop. Last week, Nvidia was among the high-profile semiconductor stocks to turn lower, with the artificial intelligence (AI) chip leader responding to headlines from both President Biden and GOP nominee Donald Trump that ramped up the hawkish talk around advanced semiconductor tech and China trade. That followed closely on the heels of a rocky end to June for NVDA, with many investors taking profits after the stock's 10-for-1 split.

While Vice President Harris seems the likeliest nominee following Biden's weekend withdrawal from the presidential race, the DNC convention is about a month away. That said, the VP isn't necessarily expected to deviate from the current administration's stance on semiconductors, including advanced tech trade with China and semiconductor manufacturing at domestic companies, like Intel (INTC).