Peter Thiel Exits Nvidia and Cuts Tesla in Major Portfolio Shake-Up

Billionaire investor Peter Thiel has sent a stark signal to the markets regarding the sustainability of the artificial intelligence boom. According to filings released over the weekend, Thiel has completely exited his position in AI heavyweight Nvidia, a move that aligns with growing apprehension over a potential bubble in technology valuations. During the July to September period, his Thiel Macro fund sold off approximately 537,742 shares of the chipmaker. Based on average stock prices during that quarter, the liquidation is valued at nearly $100 million, leaving the fund with zero exposure to Nvidia as of September 30.

This retreat from high-flying growth stocks wasn't limited to the AI sector's favorite chipmaker. The filings reveal that Thiel also aggressively slashed his holdings in Tesla, reducing his stake from over 272,000 shares down to just 65,000. He also completely exited his position in energy generation firm Vistra Energy. However, capital did not leave the tech sector entirely; instead, it appears to have rotated toward established stability, with the fund purchasing new stakes in Apple and Microsoft.

Thiel’s maneuvering places him among a growing chorus of skeptical heavyweights. His exit comes just a week after SoftBank disclosed it had sold its own stake in Nvidia, and coincides with moves by Michael Burry famed for predicting the 2008 financial crisis who recently revealed heavy short positions against both Nvidia and Palantir. While Thiel hasn't issued a specific statement regarding these latest trades, he has previously warned that current tech valuations are stretched, drawing comparisons between the recent price spikes and the 1999 Dotcom bubble crash.

The backdrop to these sales is a market increasingly fretting over the mechanics of the AI economy. Investors are beginning to question how major players like OpenAI will meet their trillion-dollar spending commitments and how sustainable the massive capital expenditures by Wall Street’s biggest firms really are. With concerns swirling about circular financing and "overheated" growth, Thiel’s pivot suggests a defensive strategy against a market that may have run too far, too fast.