Billionaire investor Peter Thiel has fully sold his stake in leading AI-chipmaker Nvidia, according to recent regulatory filings. The exit reflects Thiel’s growing doubts over the sustainability of high valuations in the artificial-intelligence sector, which he believes is entering bubble territory.
Thiel’s fund disclosed that it disposed of approximately 537,742 shares in Nvidia by the end of the third quarter. The position once accounted for about 40% of the fund’s equity holdings, highlighting the scale of the change in strategy. Alongside the Nvidia sale, Thiel also reduced his holdings in Tesla, pivoting toward more diversified technology stocks.
Why Thiel Made the Move
Thiel has long warned about excessive investor optimism in the AI space, comparing current market dynamics to the dot-com boom. Despite Nvidia reporting robust growth – revenues surged over 50% year-on-year – Thiel appears to question whether the company’s valuation already fully reflects its future earnings potential.
With Nvidia having reached a market-capitalisation milestone of around $5 trillion, Thiel’s exit underscores a wider concern that growth expectations may be outpacing operational delivery.
Investor Implications and What to Monitor
For market watchers, Thiel’s divestment stands out because of his reputation as an early-stage tech investor with deep conviction. The sale may prompt a broader reassessment of AI-linked equity valuations and signal the beginning of cautious institutional positioning.
Key indicators to track include incremental disclosures by major funds on AI-chip holdings, guidance from infrastructure firms serving the AI ecosystem and whether price corrections in key players like Nvidia trigger wider tech sector pull-backs.
While Thiel remains bullish on long-term technology themes, his timing suggests that the current cycle may be shifting from rapid expansion to more measured growth. For now, investors should weigh whether the AI narrative continues to justify elevated multiples or if the market is entering a more discerning phase.
