Sell off Nvidia! "The tech tycoon behind the White House" Peter Thiel sharply reduced his holdings in the third quarter, newly buying Microsoft and Apple.
```
As one of Silicon Valley's most influential investors, Peter Thiel's latest moves once again send a clear signal of caution to the feverish AI market.
According to the latest 13F holdings report filed with the U.S. Securities and Exchange Commission (SEC), Thiel Macro LLC completely exited its investment in Nvidia in the third quarter. This move is especially noteworthy as it comes at a time when Nvidia’s market cap has surpassed $5 trillion and most Wall Street analysts see it as an “unshakable” leader. Moreover, Nvidia is set to release its latest earnings report on November 19.
This sell-off was accompanied by a complete overhaul of the investment portfolio. The fund sharply reduced its total U.S. equity holdings from about $212 million in the second quarter to just $74.4 million. At the same time, the fund established large new positions in Microsoft and Apple.
Major Portfolio Overhaul: Liquidating the AI Leader, Total Holdings Shrink by Two-Thirds
Thiel Macro LLC’s operations in the third quarter can be described as aggressive. Documents show that the fund not only completely sold its Nvidia shares, which accounted for as much as 40% of its previous quarter’s portfolio and sold all 537,700 shares, but also dumped another major holding, Vistra Energy, which represented 19% of its portfolio.
This action stands in sharp contrast to Nvidia’s own strong fundamentals. According to reports, Nvidia’s quarterly sales surged from $39.3 billion to $46.7 billion, with data center revenue climbing 56%. However, Thiel’s choice clearly reflects a judgment based on future valuations rather than current performance.
Overall, the fund’s portfolio turnover exceeded 80%. Its total position size plummeted from around $212 million to $74.4 million. This series of actions is more like a decisive strategic withdrawal than a mild rebalancing.
Shifting to Big Tech: New Positions in Microsoft and Apple, Cutting Tesla
Alongside the major sell-off, Thiel Macro LLC concentrated its remaining capital in two other tech giants. Documents show the fund bought Microsoft and Apple stocks for the first time in the third quarter.
The fund initiated new positions by purchasing 49,000 shares of Microsoft and 79,181 shares of Apple in the third quarter. Meanwhile, it significantly reduced its long-held Tesla position by selling 207,600 shares—a reduction of 76%.
By the end of Q3, Thiel Macro LLC’s portfolio consisted of just three stocks. Among them, Tesla, after the reduction, remained the largest holding at around 38.8%; the newly bought Microsoft and Apple followed, accounting for 34.1% and 27.1% of the portfolio respectively.
This shift shows that Thiel currently prefers platform companies with diversified revenue sources, large cloud businesses, hardware ecosystems, and mature software services.
AI Bubble Theory Revisited: Thiel’s Consistency in Words and Actions
Thiel’s latest reshuffling did not come out of the blue. He previously warned that the hype cycle in AI is far ahead of its real economic payoff, comparing the current market frenzy to the internet bubble in 1999 when investors paid excessively for a technology that would take 15 to 20 years to fully realize.
Zeroing out his Nvidia holdings is a powerful manifestation of this viewpoint. Although Thiel himself has praised Nvidia’s leadership in hardware, his investment decisions suggest he sees the AI transformation as a “slow burn.” In his view, it is the platform companies that can provide enduring economic value, not the pure chipmakers whose valuations are already high.
Peter Thiel is not alone among high-profile figures expressing concern about a potential AI bubble. Amazon founder Jeff Bezos has called the AI boom an “industrial bubble”; Goldman Sachs CEO David Solomon has warned the market may face a correction within 12 to 24 months. Legendary investor James Anderson has also raised “unease” about some of Nvidia’s financing plans.
“The Tech Tycoon Behind the White House”
Peter Thiel holds a pivotal position in the technology and investment worlds, thanks to his founding roles in several disruptive tech companies. He is not only PayPal’s co-founder and former CEO, but also Facebook’s first outside investor.
Additionally, he co-founded Palantir, the most closely watched defense AI firm, and serves as its chairman. Through his fund, Founders Fund, he has invested in such well-known companies as SpaceX and Airbnb. With deep involvement in financial technology, social media, and defense tech, he is a highly influential figure in both the tech and capital markets.
Risk Warning and DisclaimerThe market involves risk; investments should be made cautiously. This article does not constitute individual investment advice and does not take into account any individual user’s specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions herein suit their particular circumstances. Investing based on this article is at one’s own risk. ```