Peter Thiel Exits Nvidia as Fund Shifts to Big tech, Sparks Debate on AI Investment
NEW YORK – Billionaire investor Peter Thiel has dramatically reshaped his fund’s portfolio, completely divesting from Nvidia shares and concentrating investments in Apple, Microsoft, and a significantly reduced position in Tesla. The move, revealed in third-quarter filings, represents “the most radical change of direction of the year among all major technology investors,” according to reports.
Thiel’s fund reduced its assets under management by two-thirds, from $212 million in the second quarter to $74.4 million in the third. The portfolio now consists primarily of Apple (27%), Microsoft (34%), and tesla (39%), with the Tesla stake reduced by 77% through the sale of 207,613 shares.
The shift signals a preference for established tech giants with diversified revenue streams over semiconductor companies driving the current artificial intelligence boom.”He sees AI as a transformative but slow-moving technology, and that platforms, not disposable electronic chips, offer enduring economic prospects,” The Street reported.
The decision arrives as Nvidia reaches a historic market capitalization exceeding $5 trillion, and palantir, an AI software provider, reports a 63% increase in annual turnover. Palantir CEO Alex Karp labeled the move “strange” and those betting against his company ”completely insane.”
Despite the strong performance of AI-focused companies, some analysts are beginning to question the sustainability of the current market enthusiasm, with Deutsche bank noting a growing number of observers are wondering if a stock market correction is on the horizon, even amidst “mega-deals” like OpenAI’s $38 billion contract with Amazon.Former President Donald Trump, however, expressed optimism about AI, stating, “I like AI, I think it will be vrey useful,” during a meeting with Hungarian Prime Minister Viktor Orban at the White House.
