Peter Thiel Dumps Entire Nvidia Stake Amid Growing AI Bubble Fears

Billionaire investor Peter Thiel has completely exited his position in Nvidia, intensifying market chatter about a potential AI-driven bubble in technology valuations. According to recent Form 13F filings from his Thiel Macro fund, Thiel sold all 537,742 shares of Nvidia (NASDAQ: NVDA) between July and September. Based on Nvidia’s average stock price during that period, the liquidation is estimated to be worth nearly $100 million.

Thiel’s move comes at a time when Nvidia remains one of the biggest beneficiaries of the ongoing artificial intelligence boom, with its advanced GPUs powering much of today’s AI model training. However, the tech titan’s skyrocketing valuation has triggered increasing skepticism among high-profile investors. Earlier this year, Thiel publicly cautioned that Nvidia’s rapid rise resembled the late 1990s dot-com bubble, warning that the market could be overestimating short-term AI gains.

Alongside his Nvidia sell-off, Thiel also sharply reduced his holdings in Tesla (NASDAQ: TSLA), cutting his position from 272,613 shares to just 65,000. Meanwhile, he increased exposure to other tech giants, purchasing 79,181 shares of Apple (NASDAQ: AAPL) and 49,000 shares of Microsoft (NASDAQ: MSFT). Filings also showed Thiel fully exited his 208,747-share stake in Vistra Energy (NYSE: VST).

Thiel’s Nvidia exit follows similar moves by other major investors. SoftBank recently announced it had sold its entire Nvidia position, while famed investor Michael Burry disclosed significant short positions against Nvidia and Palantir (NASDAQ: PLTR). These actions have fueled broader concerns about inflated AI-related valuations.

Investors are increasingly questioning whether companies can sustain the massive capital expenditures required to support large-scale AI development. OpenAI’s reported multi-year spending commitments exceeding $1 trillion have added to worries, especially given Nvidia’s central role in supplying AI chips. Discussions around circular financing between AI developers and chipmakers have further heightened scrutiny.

As Wall Street monitors escalating AI investment trends, Thiel’s complete divestment from Nvidia signals that even early tech visionaries are growing cautious about the sector’s overheated valuations.