In a move that has sent ripples through Silicon Valley and Wall Street alike, Peter Thiel’s hedge fund, Thiel Macro LLC, has completely divested its stake in Nvidia Corp., according to a recent regulatory filing. The sale, executed during the third quarter of 2025, eliminated a position valued at nearly $94 million, representing about 40% of the fund’s portfolio. This decision comes at a time when Nvidia, the undisputed leader in artificial intelligence chips, has seen its market value skyrocket, fueling debates about an impending AI bubble.

Thiel, a tech billionaire and co-founder of PayPal, has long been vocal about the perils of overhyped technologies. His fund’s 13F filing, disclosed on November 17, 2025, reveals not only the full exit from Nvidia but also a significant reduction in Tesla Inc. holdings by 76%. Now, Thiel Macro’s primary bets include Apple Inc. and Microsoft Corp., signaling a pivot toward more established tech giants amid growing skepticism over AI-driven valuations.

The timing is particularly noteworthy as Nvidia prepares to release its third-quarter earnings report, which could either validate or dispel concerns about the sector’s sustainability. Analysts point to Nvidia’s staggering 50x price-to-earnings ratio as a red flag, echoing broader market caution. As reported by Reuters, this sale intensifies worries of an artificial intelligence bubble, with Thiel’s actions seen as a harbinger for other investors.

Unpacking the Filing: A Shift in Strategy

Delving deeper into the 13F filing, Thiel Macro offloaded all 537,742 shares of Nvidia, a stake that had been a cornerstone of its portfolio. This isn’t an isolated move; SoftBank Group Corp. also disclosed selling its entire $5.8 billion Nvidia position in the same quarter, as noted in a report by Business Insider. Such synchronized exits from high-profile funds underscore a collective reevaluation of AI investments.

Peter Thiel’s perspective on AI has been consistent. In a discussion at the All-In Summit in September 2024, Thiel remarked that AI in 2024 resembled the internet in 1999—promising but overinflated. He stated, ‘AI will transform the world not in 6 months but in 20 years,’ highlighting that Nvidia was capturing over 100% of the profits while others incurred losses, according to posts on X aggregating his comments.

This sentiment aligns with broader market analysis. A Sequoia estimate from 2023, resurfaced in recent X discussions, indicated that the AI industry spent $50 billion on Nvidia chips but generated only $3 billion in revenue, pointing to unsustainable economics. Thiel’s fund reduced its overall U.S. equity holdings from $212 million to $74 million, per details from The Economic Times.

Market Reactions and Nvidia’s Stock Slide

Nvidia’s shares fell 2.7% following the disclosure of Thiel’s sale, as investors reassessed momentum ahead of earnings, according to Traders Union. The stock experienced a notable decline, with concerns amplified by Thiel’s divestment raising questions about the future trajectory of Nvidia’s performance, as covered in a report by El-Balad.

Other prominent investors have echoed this caution. Michael Burry, known for predicting the 2008 financial crisis, has also shifted away from AI bets, contributing to the narrative of an AI bubble burst. The Economic Times reported that Thiel’s move, combined with Burry’s and SoftBank’s actions, signals a potential turning point for the sector.

Despite the sell-off, not all views are bearish. Bank of America analysts maintain a positive stance on Nvidia, disagreeing with Thiel’s caution, as detailed in a Yahoo Finance article titled ‘Peter Thiel Just Ditched Nvidia Stock. Should You?’ from November 18, 2025. They argue that Nvidia’s dominance in AI chips, with next-gen products like Blackwell sold out, justifies its valuation.

Echoes of Past Bubbles: Historical Context

Thiel’s actions draw parallels to historical tech bubbles. In 2023, valuation expert Aswath Damodaran sold his Nvidia shares, citing a $300 billion market cap surge in a week as pushing limits, per X posts referencing Barron’s. Similarly, ARK Invest’s Brett Winton projected $1.7 trillion in AI hardware spend by 2030 but questioned Nvidia’s ability to maintain a 60% share at high margins.

Current web searches reveal ongoing debates on X, where users like Autism Capital have amplified Thiel’s quote: ‘In AI, Nvidia is making 100% of the profits and everyone else is losing money.’ This reflects sentiment that AI hype may be outpacing real economic returns, with Nvidia’s profits masking industry-wide losses.

Analysts from Seaport Global Securities initiated coverage on Nvidia with a sell rating in April 2025, setting a $100 price target and noting that much optimism is already priced in, amid packaging limits at TSMC, as shared in X posts from *Walter Bloomberg.

Broader Implications for AI Investments

The divestments extend beyond Thiel. SoftBank’s $5.8 billion Nvidia sale in October 2025, as reported by Business Insider, represents a massive retreat. Combined with Thiel Macro’s moves, these actions have cut aggregate holdings significantly, stirring fears of a wider correction in AI stocks.

Hedge funds appear divided, with some exiting while others boost positions, according to a Chosun report from November 18, 2025. This divergence highlights the uncertainty: while Nvidia became the world’s most valuable company through AI exuberance, as per Yahoo Finance, sustainability remains in question.

Investors are now eyeing Nvidia’s earnings report for clues. A strong showing could rebound the stock, but persistent concerns over 50x P/E ratios and bubble fears may persist, as echoed in CNBC’s coverage of Thiel’s hedge fund dumping Nvidia and cutting Tesla positions on November 17, 2025.

Investor Sentiment and Future Outlook

On X, posts from users like HighTableAndy note Thiel’s alignment with warnings on AI hype, amid a $1.8 trillion market valuation for related stocks. Others, such as Pete the Northern Lad, tie the sale to broader White House economic discussions, though indirectly.

Thiel’s history of contrarian bets— from PayPal to Palantir—lends weight to his caution. As Bloomberg reported on November 17, 2025, this marks ‘yet another retreat’ from Nvidia, the leading AI chip provider.

Ultimately, Thiel’s fund now focuses on Apple and Microsoft, with a reduced Tesla stake, per the 13F. This repositioning suggests a belief in more grounded tech plays over speculative AI growth, as analyzed in Investopedia’s piece from November 18, 2025, on Thiel dumping shares before Nvidia’s big earnings.

Navigating the AI Landscape Ahead

As the AI sector matures, Thiel’s exit prompts questions about overvaluation. With Nvidia’s chips central to AI training, yet revenue mismatches persist, investors must weigh short-term hype against long-term transformation.

Reports from Investing.com on November 17, 2025, describe Thiel dumping Nvidia and slashing Tesla amid bubble fears, a narrative gaining traction. Meanwhile, X discussions reference Dan Niles’ views on AI spend versus revenue, reinforcing caution.

For industry insiders, this moment underscores the need for rigorous due diligence. While Nvidia’s earnings could shift sentiment, Thiel’s move serves as a stark reminder of the risks in chasing AI’s glittering promises.