Peter Thiel’s fund exits Nvidia in Q3

Based on the September 30 closing price, the stake was valued at roughly $100 million. The sale came amid growing investor caution over elevated valuations across the artificial intelligence sector.

The move followed October’s news that SoftBank had also sold its Nvidia stake, unloading $5.83 billion worth of shares. While Thiel’s approach to AI is more conservative than Masayoshi Son’s, both investors trimmed exposure at the same time, reflecting shared concerns about a potential bubble forming around AI stocks.

Nvidia shares have risen only about 2% since late September. Recent headlines have focused on CEO Jensen Huang’s plans to sell Blackwell chips in China.

An analysis of 13F filings from 909 hedge funds shows a near-even split: 161 increased their Nvidia holdings, while 160 reduced them. The divide underscores broader uncertainty around companies rapidly scaling spending without proven monetization models to justify their valuations.

Thiel’s fund did not comment on the sale. According to its filing, Thiel Macro’s top holdings are now Apple, Microsoft, and a smaller stake in Tesla. Meanwhile, Thiel is investing in U.S. ventures competing with Nvidia, including chipmaker Substrate and AI startups Mercor and Cognition AI – all key parts of his growing venture portfolio.

The fund’s exit adds to mounting scrutiny of the AI market, where valuations remain highly sensitive to shifting expectations. Investors continue to debate whether current prices for AI-driven companies are sustainable, as capital inflows surge while spending outpaces revenue.

Even so, interest in AI remains strong. Many investors see these sales as partial profit-taking after years of gains, but the mix of high valuations, uncertain profitability, and rising volatility is prompting major funds – including Thiel Macro and SoftBank – to take a more cautious stance toward Nvidia.