Billionaire investor Peter Thiel has sold his entire stake in chipmaker Nvidia (NVDA) and trimmed his Tesla (TSLA) holdings amid growing fears of an overinflated “AI Bubble.” Thiel’s hedge fund, Thiel Macro LLC, reported in its latest 13F filing for the September quarter that it reduced its portfolio size from $212 million at the end of Q2 to $74.4 million as of September 30, 2025.
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According to the filing, Thiel also dumped the fund’s entire holdings in Vistra Corp. (VST), an integrated U.S. electricity generation company with assets across natural gas, solar, nuclear, and battery energy storage. Meanwhile, Thiel increased positions in Microsoft (MSFT) and Apple (AAPL). Following these moves, the fund now holds only three major tech names: Microsoft, Apple, and Tesla. Thiel appears to prefer Microsoft and Apple because these tech giants have diversified revenue streams across cloud services, devices, and software, not just AI chips.
Thiel Dumps Nvidia, Tesla, and Vistra Shares
During Q3, Thiel sold 537,742 NVDA shares, which had previously accounted for about 40% of Thiel Macro’s portfolio, a reduction of nearly two-thirds. He first began buying Nvidia stock in the fourth quarter of 2024. The fund also sold all 208,747 Vistra shares, which made up about 19% of total holdings.
In the meantime, Thiel Macro sold 207,613 TSLA shares, cutting its Tesla position by roughly 76%. The fund now holds 65,000 Tesla shares, which remain its largest investment, valued at $28.91 million and representing 38.83% of the portfolio.
On the buy side, the billionaire added 49,000 Microsoft shares, bringing the position to $25.38 million with a 34.09% weight. Similarly, Thiel added 79,181 shares of iPhone maker Apple, taking its total stake up to $20.16 million with a 27.08% weight.
Why Did Thiel Exit Nvidia?
Thiel’s complete exit from Nvidia surprised many in the industry, given his long-standing support for the company’s dominance in AI hardware. However, he has repeatedly warned that excitement around AI was growing faster than its actual financial value, and his Q3 portfolio changes reflect that belief. Thiel compared the current AI boom to 1999, when investors anticipated major technological transformations that ultimately took 15–20 years to materialize.
Thiel’s cautions are hard to ignore because he has been one of the major driving forces in the technology sector. As co-founder of PayPal (PYPL) and Palantir Technologies (PLTR), and chairman of the latter, he has a track record of identifying major technology trends early.
Through his venture capital firm, Founders Fund, Thiel has also backed transformative companies such as SpaceX (PC:SPXEX) and Airbnb (ABNB).
Although Thiel remains optimistic about AI’s long-term potential, he believes its impact will unfold gradually. In his view, diversified technology platforms like Microsoft and Apple represent stronger long-term investments than firms whose valuations depend primarily on AI chips.
Which Is the Best Tech Stock to Buy, According to Analysts?
We used the TipRanks Stock Comparison Tool to determine which stock is currently preferred by analysts.
Out of the above-discussed four trillion-dollar tech giants, Microsoft and Nvidia stocks carry a “Strong Buy” consensus rating, with NVDA stock offering a higher upside potential over the next twelve months.
