Why billionaire Peter Thiel sold his entire stake in NVIDIA
What's the story
Billionaire investor Peter Thiel has sold his entire stake in chipmaker NVIDIA, recent regulatory filings reveal. The move comes amid fears of an artificial intelligence (AI)-driven bubble in tech stocks. The 13F filings from Thiel Macro LLC show that the fund sold all of its 537,742 shares in NVIDIA during the July-September quarter. This position made up a whopping 40% of the fund's portfolio.
Portfolio impact
Fund's equity book shrinks after NVIDIA and Vista sales
Along with the NVIDIA shares, Thiel Macro LLC also sold its entire stake in US-based energy company Vistra Energy. This move wiped another 19% off the fund's portfolio. The exits have drastically reduced the fund's equity book from $212 million in Q2 to just $74.4 million in Q3. Now, electric vehicle maker Tesla accounts for nearly 39% of the fund's portfolio.
Market analysis
NVIDIA's market performance and future projections
Despite Thiel's exit, NVIDIA has been on a stellar run. The company surpassed a $5 trillion valuation in October and is up some 36% over the last 12 months. This comes on the back of a 56% rise in sales to $46.7 billion, driven by significant increases in data center revenue. For Q3 FY2026, NVIDIA expects revenue growth with projections of around $54 billion with a 2% tolerance range.
Stock inflation
Concerns over AI-driven tech stock inflation
Despite its stellar performance, NVIDIA's stock has come under scrutiny. Fears of circular deals in the AI space are thought to be artificially inflating technology stocks' values. One such deal is a $10 billion transaction between NVIDIA and OpenAI, where Sam Altman's firm will use the funds to buy GPUs from the Jensen Huang-led chipmaker.