In addition to their political duties, politicians also focus on their investment portfolios during the election campaign period. While many see great potential in artificial intelligence (AI)-focused stocks, several politicians have decided to ditch some familiar names in the segment.

In this article, we take a look at three stocks that politicians have sold recently - Microsoft, Broadcom and Lam Research - and why they decided to make these moves.

Broadcom: politicians are looking at it with scepticism

Semiconductors, or semiconductors, are one of the fastest-growing sectors, thanks largely to the development of technologies such as AI. Still, some politicians have decided to sell Broadcom stock to $AVGO. In September 2024, for example, Democratic Congressman Josh Gottheimer of New Jersey sold $1,001 to $15,000 worth of Broadcom stock in multiple transactions. Similarly, Republican John James of Michigan made sales of Broadcom stock during the same period.

While it is not entirely clear why these politicians chose to sell, it may be related to concerns over expectations for third quarter 2024 results, which were released on September 6. If political sales were driven by these concerns, it would appear that these politicians made a mistake. In fact, Broadcom's results showed year-over-year growth in several key metrics, including revenue, net income, and free cash flow, leading to a surge in the stock price in the following weeks.

Lam Research: optimism and pessimism in one sector

Another company that has sparked policymakers' attention is Lam Research $LRCX, which specializes in semiconductor wafer processing equipment. In September 2024 sales of this stock were made by both Gottheimer and James.

However, even in this case, the situation is not clear-cut. While some policymakers are selling, others are bullish on the sector. In contrast, Marjorie Taylor Greene, a Republican from Georgia, bought shares of Lam Research in September and October, investing thousands of dollars in both transactions.

This discrepancy between the politicians shows a difference of opinion about the future of the sector and its performance in the short term.

Microsoft: Politicians sell, but billionaires buy

Microsoft $MSFT is one of the largest technology companies in the world, but recently some politicians have decided to exclude this stock from their portfolios. Among those who have sold Microsoft stock have been Congressmen Josh Gottheimer, Bill Keating and John James, who have made sales of shares ranging from $1,000 to $250,000 between August and September 2024.

On the other hand, it turns out that this move was not universally correct for all politicians. Indeed, many billionaires and hedge funds bought Microsoft stock in the second quarter of 2024. Among them were Bridgewater Associates, a firm founded by Ray Dalio, or Coatue Management, led by Philippe Laffont.

Microsoft also reaffirmed its commitment to shareholders when it announced a 10% increase in its quarterly dividend on Sept. 16 and launched a share buyback program worth up to $60 billion.

Disclaimer: There is a lot of inspiration to be found on Bulios, but stock selection and portfolio construction is up to you, so always do a thorough analysis of your own.

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