Peter Thiel sells entire Nvidia stake despite AI bubble fears
- By IndiaStartupBuzz | November 18, 2025
Billionaire Peter Thiel’s hedge fund, Thiel Macro LLC, sold its entire stake in Nvidia during the third quarter of 2025, unloading 537,742 shares valued at about $100 million. This sale marked a significant reduction in the fund ’s portfolio amid mounting concerns over a potential artificial intelligence-driven bubble inflating tech stock valuations.
Nvidia, which became the world’s first company to reach a $5 trillion valuation in October 2025, has seen its stock price soar by around 37.5% year-to-date, fueled by robust sales growth and data center revenue expansion. Despite this stellar performance, voices in the investment community, including Thiel and famed investor Michael Burry, have expressed skepticism about the sustainability of Nvidia ’s premium valuation amid concerns of circular deals potentially inflating AI-related stocks artificially.
Thiel’s exit from Nvidia aligns with a broader trend of high-profile investors offloading their holdings in AI chipmakers, including Japanese tech investment firm SoftBank, which divested its entire $5.8 billion stake to redirect funds toward other AI investments.
Following these moves, the overall equity book of Thiel Macro shrank to $74.4 million from $212 million earlier in the year, with Tesla becoming its largest portfolio holding at nearly 39%.
While reasons for the sales are not officially confirmed, the timing suggests increasing caution as tech valuations remain high despite concerns over market bubbles linked to AI hype. The trend highlights diverging investor sentiment as some see long-term growth potential while others prepare for a possible market correction.
This development underscores the growing debate about the sustainability of AI’s impact on stock markets and valuations, with Nvidia at the center of the conversation about whether the AI-driven rally represents a new dawn or a speculative bubble poised for correction.
