Peter Thiel’s hedge fund, Thiel Macro, has sold its entire stake in Nvidia, sparking concerns over a potential AI bubble.
The fund offloaded 537,742 shares, worth about $100 million, during Q3, according to a regulatory filing with the U.S. Securities and Exchange Commission (SEC) on November 14. This move comes after the incident when SoftBank also sold its Nvidia shares recently, raising questions about the tech giant’s valuations and the broader AI market, Reuters reported.
ALSO READ | 5300 % jump in 5 years, would you invest in this company's stock now?
The filing showed that Thiel Macro now holds major stakes in Apple, Microsoft, and Tesla. The complete exit from Nvidia has fueled fears on Wall Street that AI investments, including advanced chips and billion-dollar data centres, may be overvalued.
Investors are now closely watching Nvidia’s Q3 earnings, set for November 19, to gauge demand for AI chips, which serve as an indicator for the entire AI sector. Unlike the bullish trends seen in Q2, many hedge funds reduced holdings in some of the ‘Magnificent Seven’ tech stocks during Q3.
ALSO READ | Gold edges up slightly, silver dips by ₹200 in minor market movement
Recently, on November 11, SoftBank Group, led by Masayoshi Son, sold its Nvidia stake for $5.83 billion but continues to invest in OpenAI. In February 2025, SoftBank, OpenAI CEO Sam Altman, and Oracle’s Larry Ellison joined former U.S. President Donald Trump to announce a $500 billion AI project named Stargate.
As per a report of Bloomberg, SoftBank CFO Yoshimitsu Goto commented, “I can’t say if we’re in an AI bubble or not,” adding that Nvidia shares were sold “so that the capital can be utilised for our financing,” without giving further details.
This series of high-profile sales has intensified scrutiny on AI investments and Nvidia’s upcoming performance, as investors try to assess whether the market for AI chips is overheating.
