NVIDIA's stock takes a hit as big investors pull out
NVIDIA just saw two major players—Peter Thiel's hedge fund and SoftBank—sell off their entire stakes, sparking fresh worries about whether the AI boom is getting overheated.
Thiel Macro is now shifting its focus to Apple, Microsoft, and Tesla instead.
Meanwhile, SoftBank cashed out $5.83 billion in NVIDIA shares but says it's still betting on AI overall.
How the market and NVIDIA are reacting
After these exits, NVIDIA's stock dropped nearly 8% in November—even though the company posted strong quarterly revenue of $57 billion.
CEO Jensen Huang isn't fazed by bubble talk though; he reassured investors by saying, "There's been a lot of talk about an AI bubble. From our vantage point, we see something very different... We excel at every phase of AI—from pre-training to post-training to inference," and remains confident about future growth in AI.
Still, some analysts are urging caution as they see signs that rapid growth for companies like NVIDIA could slow down if the AI hype cools off.