Billionaire investor Peter Thiel has made a dramatic shift in his portfolio, exiting his entire stake in Nvidia (NVDA-US) and slashing his holdings in Tesla (TSLA-US), according to recent regulatory filings(Peter Thiel recent trades). The move comes as concerns mount over an AI-fueled bubble in technology valuations, echoing warnings Thiel himself has voiced in recent months.
Nvidia Stake Sold Off
Thiel’s Thiel Macro fund sold 537,742 Nvidia shares between July and September, worth nearly $100 million based on average trading prices. By September 30, the fund no longer held any Nvidia stock.
The timing is notable. Nvidia has been the poster child of the AI boom, with its chips powering everything from data centers to generative AI platforms. But valuations have soared, prompting fears of overheating. Thiel previously compared the surge in tech stocks to the 1999–2000 Dotcom bubble, warning that stretched valuations could lead to sharp corrections.
Tesla Holdings Cut, Apple and Microsoft Added
Alongside the Nvidia exit, Thiel reduced his Tesla stake from 272,613 shares to just 65,000 shares. At the same time, he added positions in Apple (AAPL-US) and Microsoft (MSFT-US), purchasing 79,181 shares of Apple and 49,000 shares of Microsoft.
The adjustments suggest a pivot toward more established tech names with diversified revenue streams, even as Thiel trims exposure to high-volatility growth stocks.
Thiel also exited his stake in Vistra Energy (VST-US), selling 208,747 shares.
Broader Investor Concerns
Thiel’s move follows similar actions by other high-profile investors. SoftBank Group Corp. recently disclosed it had sold its entire Nvidia stake, while Michael Burry, famed for predicting the 2008 financial crisis, revealed heavy short positions in Nvidia and Palantir Technologies (PLTR-US).
The wave of sales underscores growing unease about the sustainability of AI-driven valuations. Investors are questioning how firms like OpenAI will meet spending commitments exceeding $1 trillion, and how that demand will ripple through suppliers such as Nvidia.
Bubble Fears and Capital Expenditures
Nvidia’s ties to OpenAI have sparked concerns about circular financing, while megacap tech earnings show surging capital expenditures on AI infrastructure. Analysts warn that while AI demand is real, the pace of spending may not be sustainable, raising risks of a correction.
Thiel’s exit highlights the tension between optimism about AI’s transformative potential and skepticism about whether current valuations can hold.
The Bottom Line
Peter Thiel’s decision to dump Nvidia and cut Tesla reflects broader bubble fears in AI stocks. While he has shifted capital into Apple and Microsoft, the move signals caution about the sector’s runaway valuations.
For investors, the message is clear: even the most prominent tech bulls are hedging their bets, suggesting the AI boom may be entering a more volatile phase.