Billionaire Peter Thiel’s latest 13F filing revealed a seismic shift in his equity holdings: a complete sale of his Nvidia shares after a long-term position that accounted for approximately 40% of his portfolio.
The divestiture encompassed more than 537,000 shares during the third quarter, effectively shrinking his US stock book by nearly two-thirds—from $212 million in Q2 to just $74.4 million in Q3—as the hedge fund consolidated around Apple, Microsoft, and Tesla.
This aggressive move comes despite Nvidia’s obscene market cap, which recently surpassed $5 trillion, fueled by blockbuster revenue growth, including a 56% jump in data centre sales and soaring demand for AI infrastructure chips.
Yet, for Thiel, it marks a clear expression of scepticism toward the current valuation frenzy surrounding AI leaders, echoing his longstanding warnings about a hype cycle outpacing real economics by years.
From paywall to portfolio pivot
Peter Thiel, co-founder of PayPal and early tech titan who backed Facebook and Palantir, has never shied away from contrarian positions.
His hedge fund, Thiel Macro LLC, has been under the spotlight given its significant tech holdings and Thiel’s steep net worth, reportedly at $16.3 billion as of 2025.
While he continues to champion the transformative potential of AI, his moves suggest a belief that the current market exuberance resembles the technology bubble of the late 1990s, where expectations ran far ahead of economic reality.
Thiel’s exit from Nvidia isn’t an isolated case, as other industry giants like SoftBank have also jettisoned AI stakes.
The selloff in AI-focused stocks has been pronounced, with broader indices carrying a cumulative $1.8 trillion valuation loss since late October in related ETFs.
Critics and cautionary voices grow louder
Increasingly vocal critics – including Amazon founder Jeff Bezos, Goldman Sachs CEO David Solomon, and iconic investors like Michael Burry – have expressed concerns over inflated AI valuations and speculated on a possible significant drawdown within two years.
Analysts note that Thiel is shifting emphasis to more diversified tech heavyweights like Microsoft and Apple that boast expansive cloud platforms, recurring revenue streams, and less dependence on single sectors.
This rotation underscores a strategic move toward stability amid the frothy, speculative tech environment.
Despite this, Nvidia’s fundamentals remain robust.
The company continues to lead in AI chips and infrastructure, holding a commanding position as a bellwether for the sector.
Its upcoming earnings reports will be closely watched as potential indicators of whether the AI boom sustains its economic footing or faces a painful correction.
Looking ahead: market signal or early warning?
Thiel’s selling signals caution, highlighting the divide between long-term AI optimism and short-term market realities.
His complete exit from Nvidia sends a strong message about valuations, while also serving as a reminder that the technology landscape can shift abruptly.
For investors, the key takeaway is to watch upcoming Nvidia data closely—not just for the stock’s performance but as a proxy for the broader AI investment sentiment.
If Nvidia falters on growth or guidance, it could precipitate a wider market reevaluation currently riding on lofty expectations.
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