Why Palantir co-founder Peter Thiel sold all of his NVIDIA shares

• Peter Thiels divests his entire NVIDIA position amid the AI ​​boom
• Thiel compared the AI ​​euphoria to the Internet bubble of 1999
• His hedge fund shrank its overall portfolio by nearly two-thirds in one quarter

Complete exit from the AI ​​darling

Billionaire and tech investor Peter Thiel has completely separated from NVIDIA. A 13F filing with the US Securities and Exchange Commission (SEC) shows that his hedge fund Thiel Macro LLC sold all 537,742 NVIDIA shares in the third quarter of 2025. The value of the position was approximately $100 million as of September 30. At the same time, the fund reduced its Tesla stake by around 76 percent. A spokesman for Thiel declined to comment on the transactions, according to Bloomberg.

The timing of the sale is surprising at first glance. NVIDIA had recently reached a market capitalization of over five trillion US dollars and reported a jump in sales from 39.3 to 46.7 billion US dollars in the quarter. The data center business alone grew by 56 percent. Analysts predict the chip maker will have annual sales of $1 trillion by 2030.

Thiel’s skepticism towards the AI ​​hype

However, the exit fits into a pattern of Thiel’s previous statements. In an interview on the Joe Rogan Experience Podcast, he compared the current AI euphoria with the Internet bubble of 1999: a technology that will dominate the economy in the long term, but could take 15 to 20 years to fully develop. According to TheStreet, Thiel sees AI as transformative, but a slow process – and the current valuations of hardware-only bets like NVIDIA as inflated.

This assessment is shared by those around him. Jack Selby, Managing Director at Thiel Capital, warned of the biggest bubble in the history of private tech investing in a Bloomberg interview in October 2025. The euphoria surrounding AI will end in a bloodbath in which hundreds of billions of US dollars would be destroyed. Selby referred to OpenAI, which had to revise its cost estimates upwards by 250 percent – for a listed company this would have caused a 90 percent drop in share price.

Rebalancing into diversified tech giants

After the sale, Thiel Macro LLC is concentrating on just three positions: Apple, Microsoft and the remaining Tesla share. The total stock portfolio size shrank to $74.4 million from $212 million in the second quarter – a decline of nearly 65 percent. According to TheStreet, with the shift, Thiel is betting on companies with diversified revenue streams, cloud infrastructure and software – business models that he considers to be more sustainable than pure AI hardware bets.

Thiel’s exit is part of a series of sales by prominent investors. Hedge fund manager Michael Burry, known from “The Big Short,” has placed bets against NVIDIA and Palantir. Softbank sold $5.8 billion worth of NVIDIA shares in October. An analysis of 13F filings from 909 hedge funds showed a split picture: 161 funds increased their NVIDIA positions, while 160 reduced them. It remains to be seen whether Thiel’s skepticism is justified – but one of Silicon Valley’s most influential investors has taken his chips off the table.

D. Maier / editorial team finanzen.net

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