Peter Thiel Is Reportedly Dumping Nvidia Stock Amid AI Bubble Jitters

Peter Thiel is the latest investor to sell Nvidia stock.

According to regulatory filings, the billionaire’s hedge fund, Thiel Macro, has unloaded its entire stake in Nvidia. The company sold 537,742 shares in the third quarter, worth about $100 million, according to Reuters estimates.

There are many reasons why investors might decide to sell their stake in a company, and not all of them deserve giant alarm bells. But it’s all the more interesting when these stakes belong to the world’s most valuable company, and the decision comes just days after another sale to high-profile investors.

Just last week, prominent Japanese investor SoftBank announced that it had sold its entire stake in the chipmaker. The company said it received $5.83 billion from the sale of 32.1 million shares of Nvidia stock in October. The sale appears to have been made to fund a multibillion-dollar investment in OpenAI, on top of the billions the company has already invested in the tech giant. SoftBank and OpenAI are also partners under the Trump-backed data center construction plan known as Stargate.

Nvidia is the ultimate AI darling. It is a company that has reached a market value of $5 trillion by riding the AI ​​wave, and enjoys a central position in the industry as the leading global supplier of highly sought-after AI chips. As a result, any perceived lack of trust in Nvidia’s path is a negative sign for the AI ​​industry overall.

It’s not entirely certain what the sell-off by Thiel and SoftBank confidently says about general investor sentiment regarding AI, and whether or not there is indeed an AI bubble, but it certainly adds to easily existing fears, and makes people feel anxious.

Over the past few months, a growing array of experts has emerged, from the Bank of England to investor Michael Burry The big short Fame, they warn of an AI bubble that could collapse not only the market, but perhaps the entire US economy if it bursts.

Companies like Nvidia have achieved record valuations as investors delight in the potential gains represented by artificial intelligence. But some believe that investor appetite is driven by FOMO and can artificially inflate the actual value of these companies. Even some top tech executives, such as Sam Altman and Jeff Bezos, have admitted to overvaluing their stocks. So what happens when investors’ appetite stops?

All eyes are now on Nvidia’s earnings report later this week to shed more light on whether the news from last week is part of a new trend taking shape and worth worrying about, or just a coincidence. The tech giant will report third-quarter earnings results after the bell on Wednesday.