Key Takeaways
- Peter Thiel’s fund sold entire $100 million Nvidia stake in Q3 2025
- SoftBank divested $5.8 billion Nvidia holdings weeks earlier
- Investors watching Nvidia’s November 19 earnings for AI demand signals
- Hedge funds reducing exposure to ‘Magnificent Seven’ tech stocks
Billionaire investor Peter Thiel’s hedge fund has liquidated its entire $100 million stake in Nvidia, fueling concerns about a potential AI bubble burst. The move comes as major investors reassess their positions in high-flying tech stocks amid valuation worries.
According to a November 14 SEC filing, Thiel Macro sold approximately 537,742 Nvidia shares during the third quarter, completely exiting its position in the AI chipmaker. The Thiel Foundation has not commented on the transaction.
The regulatory disclosure revealed Thiel Macro’s current key holdings now include Apple, Microsoft, and Tesla, indicating a strategic shift away from pure-play AI investments.
Wall Street Anxiety Over AI Bubble
The substantial sell-off has amplified existing concerns about an AI market correction on Wall Street. Investors are growing increasingly nervous about tech stock valuations that may have peaked, putting trillions of dollars in AI infrastructure investments at risk.
All eyes are now on Nvidia’s upcoming quarterly results scheduled for November 19. The earnings report will be crucial for assessing the demand pipeline for advanced AI chips, which serve as a bellwether for the entire industry.
This cautious approach marks a significant shift from the previous quarter’s bullish sentiment, with multiple hedge funds reducing their exposure to the ‘Magnificent Seven’ tech stocks.
SoftBank’s Parallel Move
Just days before Thiel’s disclosure, SoftBank Group announced it had sold its Nvidia stake, realizing $5.83 billion. Despite this divestment, the Japanese conglomerate continues to invest in Sam Altman-led OpenAI.
In February 2025, SoftBank’s Masayoshi Son joined Altman, Oracle’s Larry Ellison, and former US President Donald Trump to announce a massive $500 billion investment in an AI initiative called Stargate.
SoftBank CFO Yoshimitsu Goto remained non-committal about AI bubble concerns during an earnings conference, stating: “I can’t say if we’re in an AI bubble or not.” He explained the Nvidia sale was executed “so that the capital can be utilized for our financing,” without providing additional details.
