This article first appeared on GuruFocus.
Aug 27 – Nvidia (NASDAQ:NVDA) grabbed attention on Wednesday as investors looked ahead to its upcoming quarterly earnings, but U.S. Treasury Secretary Scott Bessent quickly ruled out the possibility of a government stake in the chip giant.
Speaking on Fox Business, Bessent said a stake in Nvidia is not on the table, adding that the company has no need for government support given its financial strength and market position.
The comments come shortly after the Trump administration took a stake in Intel (NASDAQ:INTC) to support the struggling semiconductor firm. That move sparked skepticism among investors, particularly after Intel warned the stake could add to its risks.
Bessent’s remarks also align with comments earlier this week from Kevin Hassett, head of the National Economic Council, who suggested more government-linked transactions in semiconductors and other industries could follow. Hassett even floated the idea that Intel’s stake could serve as the foundation for a U.S. sovereign wealth fund.
For now, all eyes remain on Nvidia’s results. Analysts expect earnings of $1.01 per share on revenue of $46.13 billion. The options market is pricing in a sharp move, potentially shifting the company’s market cap by $270 billion after results are released.