Peter Thiel’s hedge fund, Thiel Macro LLC, has divested its entire stake in Nvidia Corp., as revealed in a recent 13F filing. The fund sold off 537,742 shares of the leading AI chipmaker, which held a value of approximately $100 million based on Nvidia’s closing price on September 30. This decision comes closely on the heels of SoftBank Group Corp.’s announcement earlier in October, in which it revealed plans to sell its own shares in Nvidia for a staggering $5.83 billion.
While Thiel has historically taken a more cautious stance regarding advancements in artificial intelligence compared to SoftBank founder Masayoshi Son, both have chosen to liquidate their Nvidia holdings amidst growing fears of a potential AI investment bubble. Since the end of September, Nvidia’s stock price has only seen a modest increase of around 2%.
An analysis of 13F filings from 909 hedge funds indicated a divided sentiment on Nvidia. Out of these, 161 firms opted to increase their positions in the tech giant, while 160 chose to reduce theirs during the three months leading up to September. The varied perspectives reflect ongoing uncertainty regarding the AI sector, where companies continue to attract funding at high rates but have yet to establish monetization strategies that can validate these significant investments.
Thiel did not respond to inquiries for comment outside regular business hours. The Thiel Macro fund has shifted its focus towards other tech giants, including Apple Inc., Microsoft Corp., and a diminished stake in Tesla Inc. In addition to these investments, Thiel continues to support various ventures in the AI space, including a US-based competitor to Nvidia named Substrate, along with startups Mercor and Cognition AI.
As the landscape for AI investments continues to evolve, it remains to be seen how the decisions from influential investors like Thiel and Son will shape market trends and investor confidence in the sector.
