Peter Thiel’s hedge fund Thiel Macro LLC sold its entire Nvidia position in the third quarter of 2025. The fund offloaded 537,742 shares in the AI chipmaker. The stake was worth about $100 million based on the Sept. 30 closing price. Thiel Macro now counts Apple Inc., Microsoft Corp., and a reduced Tesla Inc. stake as its main holdings, according to Bloomberg.
Rising Concerns About AI Investment Bubble
The sale comes at a time of rising concerns about an AI investment bubble. Nvidia became the world’s most valuable company during the AI boom. Hedge fund manager Michael Burry has been a high profile critic. He disclosed bearish bets against Nvidia and Palantir Technologies Inc.
Japan’s SoftBank Group Corp. also announced it sold off its Nvidia shares in October for $5.83 billion. Both Thiel and SoftBank founder Masayoshi Son exited their holdings around the time Nvidia became the first company to breach a $5 trillion valuation.
Divided Investor Sentiment on Nvidia
An analysis of 13F filings from 909 hedge funds found an even split of investor sentiment. During the three months to September, 161 funds increased their Nvidia positions while 160 decreased them. Opinions remain divided about the prospects for AI companies. These companies continue to raise and spend funds at elevated rates but have yet to demonstrate monetization models that would pay off the lofty investments.
Thiel’s Other AI Investments
Thiel has backed a US-based startup named Substrate. The company aspires to compete in AI semiconductor production. He also invested in AI startups Mercor and Cognition AI among his various venture capital bets.
Burry’s Scion Asset Management disclosed this month that it bought put options on Nvidia and Palantir. These positions would benefit from declines in the stock prices. Burry later took issue with the accounting practices of hyperscalers. These companies buy Nvidia chips and include Microsoft Corp. and Alphabet Inc. He pointed out that they have extended depreciation schedules for their investments in recent years. This helps cut expenses and boost profits.
Nvidia’s shares are up just roughly 2% since the end of September. The stock slid about 1% in pre-market US trading following the disclosure. Peter Thiel did not immediately respond to a request for comment.
