Democrat Shaping AI Policy Bought Chip Stocks After Trading Ban Vote

Rep. Josh Gottheimer, a New Jersey Democrat helping write his party's artificial intelligence agenda, disclosed new purchases of AI-linked stocks, including Benchmark Electronics (BHE) and Applied Materials (AMAT), months after voting to ban lawmakers and their families from buying individual shares, CNBC reported.

Gottheimer disclosed an Oct. 12 purchase of between $1,001 and $15,000 of Benchmark Electronics stock, according to a filing released this week. His jointly owned Morgan Stanley account also bought up to $15,000 worth of Applied Materials shares on Oct. 26, following three earlier purchases of Advanced Micro Devices (AMD).

The timing drew scrutiny

The trades came months after Gottheimer voted for the Stop Insider Trading Act in July, which would prohibit lawmakers and their families from purchasing most individual stocks. The bill passed the House but has not become law. There is no evidence of wrongdoing, and Gottheimer's spokesman said the congressman turned over control of his investments to a third party with full investment discretion before taking office in 2017.

What it means for AI policy

Gottheimer sits on the House Financial Services subcommittee overseeing AI in finance, has introduced legislation on AI regulations, and co-chairs a commission developing Democrats' broader AI agenda. The purchases contrast with his longstanding support for restricting congressional stock trading, and they face fresh scrutiny as Democrats prepare to take control of Congress in January, gaining new power to regulate and investigate the AI industry.

The purchases came shortly before a sharp selloff in AI stocks. The Nasdaq Composite Index plunged 5.5% on Thursday, with Nvidia dropping more than 9% and AMD roughly 17%. Benchmark fell nearly 17% over Wednesday and Thursday, closing at $59.34, roughly 25% below its closing price on Gottheimer's October purchase date, before recovering somewhat Friday.

In delayed trading, BHE was up 1.79%, AMAT up 4.22%, and AMD up 11.04%.

What is known and what is unclear

The five trades totaled between $5,005 and $75,000, compared with $15.1 million to $59 million in disclosed household assets. Gottheimer is also awaiting congressional approval of a blind trust. It remains unclear whether the purchases will prompt any formal review or change in his committee role.