Like the temperature throughout August, the stock buying activity of Rep. Marjorie Taylor Greene, a Republican from Georgia, has stayed hot over the past few weeks. According to a recently submitted regulatory filing, Greene, who sits on the Oversight and Reform Committee and the Homeland Security Committee, added shares of six stocks to her portfolio.
In this round of stock purchasing, Greene increased her exposure to artificial intelligence (AI) stocks, picking up shares of Alphabet(NASDAQ: GOOGL)(NASDAQ: GOOG), Amazon(NASDAQ: AMZN), Intel(NASDAQ: INTC), and Nvidia(NASDAQ: NVDA). Greene also scooped up shares of logistics leader FedEx(NYSE: FDX) and pipeline operator KinderMorgan(NYSE: KMI). It's not certain how much Greene invested in each of the stocks, though each transaction was valued between $1,001 and $15,000.
The Peach State representative's interest in AI stocks remains strong
Through the first half of 2024, Greene added a variety of AI stocks to her holdings, and her enthusiasm for the rapidly growing industry has hardly slowed. Although we don't know the exact reason why Greene clicked the buy button on Alphabet, it's possible that she sense a bargain. Over the one-month period that preceded her purchase, shares of Alphabet had dropped nearly 7%. Addressing the boon that AI has represented for the company's financials, Sundar Pichai, Alphabet's CEO, stated on the Q2 2024 conference call, "Year to date, our AI Infrastructure and Generative AI Solutions for Cloud customers have already generated billions in revenues, and are being used by more than 2 million developers."
Greene's investment in Amazon provides her with another layer of AI exposure. The company is recognizing strong growth in its Amazon Web Services (AWS) business as customers turn to it for support with the heavy computing demands stemming from generative AI. Through the first half of 2024, AWS revenue and operating income has grown 18% and 79%, respectively. Amazon has exposure to AI in a variety of other ways, including its $4 billion investment in Anthropic.
Adding to her positions in semiconductor stocks like Qualcomm and ASML, Greene bought shares of Intel and Nvidia, broadening her AI exposure. As with Alphabet, Greene may have sensed, with Intel, the opportunity to pick up a prominent AI stock while it was in the bargain bin. For the month before her purchase, Intel stock had plunged about 35%. In addition to reporting disappointing Q2 2024 financial results, Intel announced that it was suspending its dividend to the chagrin of investors.
Nvidia stock rounds out Greene's AI stock acquisitions. The semiconductor stalwart continues to dominate the AI scene, and it's little surprise that Greene picked up the stock considering her enthusiasm for other AI names. Besides its robust financial health, Nvidia has tremendous growth prospects, making it an obvious consideration for conservative and growth investors alike who are AI-minded.
No stranger to logistics leaders, Greene bought shares of FedEx, following up on her purchase of United Parcel Service stock earlier this month. Reporting fiscal 2024 financial results in June, FedEx grew both revenue and adjusted EPS about 1% and 9.5%, respectively, compared to fiscal 2023. The company projects low- to mid-single-digit growth for revenue in fiscal 2025 and adjusted EPS growth of 12% to 24%. Plus, the stock's 1.9% forward dividend yield certainly doesn't hurt.
Perhaps interested in procuring more prodigious passive income, Greene added to her position in Kinder Morgan, the largest energy infrastructure stock in the S&P 500. Operating about 66,000 miles of natural gas pipeline and about 9,500 miles of refined products and crude pipelines through the United States, Kinder Morgan is a leading energy stock that is dedicated to rewarding shareholders. Currently, Kinder Morgan stock offers a forward dividend yield of about 5.4%.
Should I buy these stocks?
While it's worth noting politicians' stock picks, smart investors know that it's unwise to blindly follow their buys. Instead, it's more prudent to perform one's own due diligence and investigate potential stock picks thoroughly.
Alphabet, Amazon, and Nvidia, for instance, are all compelling AI investment opportunities. Intel, on the other hand, may seem interesting to those with long-term investing horizons who can wait for the company to implement their cost-reduction initiatives yet not as appealing to conservative investors looking to mitigate risk.
For investors looking to diversify their passive income streams, both FedEx and Kinder Morgan are both excellent options providing exposure to the logistics and energy industries, respectively.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, FedEx, Kinder Morgan, Nvidia, and Qualcomm. The Motley Fool recommends Intel and United Parcel Service and recommends the following options: short November 2024 $24 calls on Intel. The Motley Fool has a disclosure policy.
