Post by : Badri Ariffin

Peter Thiel’s hedge fund, Thiel Macro LLC, has sold off its entire holding in Nvidia Corp., marking a significant move amid increasing worries about a potential AI bubble. Once the first external investor in Facebook and a key figure in the “PayPal Mafia,” Thiel’s exit signals a cautious stance on the AI-driven surge that pushed Nvidia to unprecedented heights.

The fund offloaded all 537,742 Nvidia shares, which were valued at nearly $100 million based on the stock’s closing price at the end of September. With this sale, Thiel Macro LLC now primarily holds major stakes in Apple Inc., Microsoft Corp., and a smaller position in Tesla Inc. This shift highlights a strategic realignment in the face of rising skepticism around AI investments.

Nvidia’s rise to become the world’s most valuable company—crossing a $5 trillion valuation milestone—has attracted intense attention from investors and critics alike. Alongside Thiel, other notable players such as Japan’s SoftBank Group have also trimmed their Nvidia positions recently. SoftBank’s $5.83 billion sale of Nvidia shares in October was largely aimed at reallocating resources into other AI ventures.

Meanwhile, Michael Burry, known for predicting the 2008 financial crisis, has taken a bearish stance on Nvidia and Palantir Technologies by buying put options, betting on a decline in their stock prices. Burry’s warning about bubbles and concerns over accounting methods used by major AI players adds fuel to the debate on whether the AI market is overheated.

The current market buzz surrounds the massive spending and rapid growth of AI companies, yet many remain unsure when and how these investments will turn profitable. This cautious sentiment among leading investors like Thiel and Burry reflects the growing uncertainty about the sustainability of the AI boom.

As the AI sector continues to evolve, investors are watching closely for signals of either a continued rise or a market correction. Thiel’s complete exit from Nvidia is a clear indication that even seasoned investors are preparing for potential turbulence ahead.

#Business News