Billionaire investor Peter Thiel fully divested his holdings in artificial-intelligence giant Nvidia, according to weekend regulatory filings, amid intensifying fears that tech valuations are being inflated by the AI boom.
Filings show that Thiel sold roughly 537,742 shares of NVIDIA Corporation (NASDAQ:NVDA) between July and September. A Form 13F from his Thiel Macro fund revealed that by September 30, he no longer owned any Nvidia stock. Based on Nvidia’s average share price during the quarter, the liquidation was worth close to $100 million, according to Investing.com estimates.
Thiel also dramatically reduced his position in Tesla Inc (NASDAQ:TSLA), trimming it to 65,000 shares from 272,613. At the same time, he boosted his exposure to Big Tech by purchasing 79,181 shares of Apple Inc (NASDAQ:AAPL) and 49,000 shares of Microsoft Corporation (NASDAQ:MSFT).
Filings further indicated that Thiel exited his entire stake of 208,747 shares in Vistra Energy Corp (NYSE:VST).
Thiel’s complete exit from Nvidia comes shortly after Japan’s SoftBank Group Corp. (USOTC:SFTBY) disclosed it had also sold its entire stake in the chipmaker. In addition, Michael Burry — known for calling the 2008 financial crisis — recently revealed sizable short positions against Nvidia and Palantir Technologies Inc (NASDAQ:PLTR).
Thiel’s motivations for the Nvidia sale were not explicitly detailed in the filings. However, he has previously warned that Nvidia’s soaring valuation appeared overstretched and compared the surge in tech stocks to the Dot-com bubble of 1999–2000.
His withdrawal follows growing market anxiety over the sustainability of the AI investment frenzy. Investors are increasingly questioning how OpenAI plans to finance more than $1 trillion in projected spending and what that could mean for Nvidia and other chipmakers that supply the firm.
Concerns have also emerged around circular financing tied to Nvidia’s investment in OpenAI, while recent earnings from several mega-cap technology companies have shown a sharp rise in AI-related capital expenditures across Wall Street.