Whether you agree with the practice or not, Congressional leaders trade stocks. In fact, interest in what stocks members of Congress are trading is so high that MarketBeat provides investors with Congressional trading data as a free service.
One thing that may surprise, and perhaps disappoint, investors is how predictable the list of most traded stocks is. It’s primarily a list of large-cap names. You’re not finding a lot of small-cap names or meme stocks. This isn’t a place where investors are going to find a hot penny stock.
In recent years, that’s meant a healthy dose of Magnificent Seven stocks. One name that stands out in the last 90 days is Microsoft Corp. (NASDAQ: MSFT). Microsoft has been among the most frequently traded stocks by lawmakers over the past 90 days. In fact, MSFT stock has been bought six separate times since April. The buys have also been on both sides of the political spectrum, with the six buys being made by two Republican and two Democrat members.
Only NVIDIA Corp. (NASDAQ: NVDA) has more trades among the Mag 7. Meta Platforms Inc. (NASDAQ: META) was the subject of five different trades.
That might not sound like a stampede, but for congressional disclosures, it’s enough to raise eyebrows, and maybe prompt a little curiosity. So, what’s driving the renewed enthusiasm for this tech giant?
Reason #1: A Tech Behemoth Hiding in Plain Sight
Let’s start with the obvious: Microsoft is a technology conglomerate. From Windows (hardware) to Azure (cloud computing), Office (software) to OpenAI partnerships (artificial intelligence), the company touches virtually every significant part of the technology sector. If you want to bet on the future of cloud computing, artificial intelligence, cybersecurity, and enterprise software all at once, owning Microsoft stock is like owning a technology-based ETF.
However, whereas some may be concerned about buying a stock that’s a jack-of-all-trades, investors can see that Microsoft is near the top in virtually every sector in which it competes. The company plays to win, and shareholders are the beneficiaries.
But that’s true for any investor. What is it about Microsoft that could make it a favorite of Congressional leaders?
Reason #2: The AI Factor
The consistent performance of MSFT stock is on display as the AI trade heats up. While many investors are looking at unproven small-cap names, Microsoft is quietly up 17% in 2025. This reflects the company’s relationship with OpenAI, which turned ChatGPT into a household name and made both companies a lot of money.
Microsoft’s multi-billion-dollar stake in OpenAI has allowed it to bring ChatGPT features into Bing, Office, and other flagship products. The relationship between the two companies is showing signs of strain, but as is usually the case in these situations, money talks. However, billions of dollars are at risk on both sides, which will probably be an incentive for the two companies to maintain a fragile alliance.
Here is where the congressional buying has more interest. Lawmakers are watching AI reshape our economy, so investors should note that MSFT stock draws significant interest when these leaders want exposure to this megatrend.
Reason #3: The Defense and Cloud Connection
Another angle with government ties is Microsoft’s deep ties to government contracts. From the Pentagon’s cloud infrastructure awards to state and local cybersecurity modernization efforts, the company has significant ties to the public sector.
It’s purely speculative whether that familiarity influences stock purchases, but the company’s government business is robust. Many lawmakers have access to which companies will be awarded bids.
Reason #4: A Dash of FOMO
Finally, there’s the classic investing motivator: fear of missing out. With the stock setting fresh all-time highs and Wedbush analyst Dan Ives forecasting a $5 trillion market cap for the company, some lawmakers may simply be jumping on the momentum train.
Microsoft’s steady growth and fortress balance sheet can look especially appealing for any investor looking for exposure to technology stocks. Plus, it’s a stock that is above reproach and doesn’t create the drama found in more volatile names.
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The article "Why Microsoft Keeps Showing Up in Congressional Portfolios" first appeared on MarketBeat.
