Billionaire Peter Thiel Sells Entire Nvidia Stake Amid Market Concerns

Billionaire investor Peter Thiel has divested his entire stake in Nvidia, selling around 537,742 shares valued at nearly $100 million during the third quarter of 2025. Regulatory filings released over the weekend revealed that his Thiel Macro fund no longer holds any Nvidia shares as of September 30.

The decision to completely exit Nvidia comes amid growing worries about an artificial intelligence (AI)-driven bubble in technology valuations. Thiel, known for co-founding PayPal and Palantir Technologies, had previously cautioned about inflated valuations in Nvidia, drawing parallels to the Dotcom bubble that led to a significant market crash in 2000.

At one point, Nvidia represented nearly 40% of Thiel's investment portfolio. Following this sale, his fund's equity holdings were reduced by almost two-thirds. In the second quarter of 2025, the Los Angeles-based hedge fund reported $212 million in long U.S. stock investments, which dwindled to approximately $74.4 million by the third quarter.

While the precise motivations behind Thiel's decision remain unclear, his earlier warnings regarding AI valuations indicate a growing apprehension about the sustainability of the current market environment.

High-profile investor exits from Nvidia have been increasingly common. Just a week prior to Thiel's divestment, Japanese technology giant SoftBank revealed it had sold off its entire stake in Nvidia. Additionally, well-known investor Michael Burry, recognised for predicting the 2008 financial crisis, disclosed substantial short positions on both Nvidia and Palantir Technologies.

In addition to disposing of his Nvidia shares, Thiel has also reduced his holdings in Tesla from 272,613 shares to just 65,000. He completely sold off his 208,747-share position in Vistra Energy, a firm focused on energy generation. However, he did acquire 79,181 shares in Apple and 49,000 shares in Microsoft during the same timeframe.

The timing of these sales is particularly noteworthy, as Nvidia is set to announce its earnings on Wednesday afternoon. The market is currently positioned optimistically, anticipating a post-earnings movement of around 7%. Investors are increasingly wary of how AI leader OpenAI will manage its substantial spending commitments exceeding $1 trillion, and the potential implications this may have for Nvidia and other semiconductor manufacturers. Nvidia's financial ties with OpenAI have raised concerns among analysts about potential circular financing in the tech sector.