Peter โขThiel Exits Nvidia โas Fund Shifts โฃto Big โคtech, Sparks Debate on AI Investment
NEW YORK – Billionaire investor Peterโ Thiel has dramatically reshaped his fund’s portfolio, completely divesting fromโฃ Nvidia โshares and concentrating investments inโข Apple, Microsoft, and a significantly reducedโข position in Tesla. The โmove, revealed in third-quarter filings, represents “the most radical change of direction of โคthe year among all majorโข technologyโ investors,” according to reports.
Thiel’s fundโ reduced its assets under management by two-thirds, from $212โข million โฃin the second quarter to $74.4 million in theโ third.โ The portfolio โnow consists primarilyโ ofโค Apple โ(27%), Microsoft (34%), and teslaโ (39%), with the Tesla stake โขreduced by 77% through theโฃ sale ofโ 207,613 shares.
The shift signals a preference for established techโ giants with diversified revenue streams over semiconductor companies driving the current โขartificial โขintelligence boom.”He sees AI as aโ transformative but slow-moving โtechnology, and thatโ platforms, not disposable electronicโ chips,โข offer enduring economicโฃ prospects,” โค The Street โข reported.
The decision arrives as Nvidiaโค reaches โฃa historic market capitalization exceeding $5 trillion, โขand palantir, an AI software provider, reports a 63%โ increase inโ annual turnover. Palantir CEO Alex Karpโฃ labeled the move “strange” and โthose betting against his company โ”completely insane.”
Despite the strong performance of AI-focused companies, someโฃ analysts โare beginning to question theโ sustainability โof the currentโข market โenthusiasm, with Deutscheโค bank noting a growing number of observers are wondering if a stock market correction โคis on the horizon, โeven amidst “mega-deals” like OpenAI’s $38 billion contractโฃ with Amazon.Former President Donald Trump, โขhowever, expressed optimism aboutโค AI, stating, “I โlike AI, I think it will โbe vrey โuseful,” duringโข a meeting with Hungarian โPrime Minister Viktor โOrban atโ the White House.