Peter Thiel’s Fund Sells Entire Nvidia Stake

Peter Thiel’s hedge fund, Thiel Macro LLC, has divested its entire stake in Nvidia, as recently revealed in a 13F filing. The fund sold 537,742 shares of the chipmaker, valued at approximately $85 million at the close of the second quarter. By September 30, the shares could have been worth around $100 million, although it remains unclear when exactly the sale occurred.

Sales Amidst Market Concerns

The liquidation of Thiel’s Nvidia stake follows a similar move by SoftBank, which disclosed it also sold all its shares of Nvidia during the same quarter. While Thiel Macro’s holding was relatively insignificant against Nvidia’s massive $4.6 trillion market capitalization, SoftBank’s divestment was valued at $5.8 billion. Both these decisions highlight growing apprehension among investors about an AI bubble, particularly given Nvidia’s pivotal role in supplying advanced chips for AI applications.

Significance of Nvidia in the Tech Landscape

Nvidia has experienced remarkable success in recent months, becoming the first company to surpass the $5 trillion valuation last month. As Nvidia approaches its third-quarter earnings report, analysts, including Dan Ives from Wedbush, maintain a positive outlook. Ives described Nvidia as a “foundational piece” of the AI revolution, predicting that it will surpass market expectations.

Thiel Macro’s Portfolio Adjustments

As of the end of the third quarter, Thiel Macro’s portfolio still includes stakes in major companies like Apple, Tesla, and Microsoft, which collectively were worth over $74 million. Throughout this year, the fund has made numerous adjustments to its U.S. stock portfolio.

• In the first quarter, Thiel’s fund exited its position in Amazon and acquired shares in Microsoft, Vistra, and ASML.
• In the second quarter, it disposed of Microsoft and ASML shares.
• The last quarter saw the fund divest Vistra, reinvest in Microsoft, and initiate a new position in Apple.

Thiel Macro’s overall portfolio value has shown significant growth from roughly $118 million at the end of 2022, increasing to $153 million by the end of March, and reaching $212 million by June.

Trends in Tesla Holdings

Interestingly, Tesla remains a consistent element in Thiel’s portfolio over the past four quarters. However, the fund dramatically reduced its Tesla shares by 76% last quarter, leaving it with approximately 65,000 shares valued at around $29 million as of September 30. Thiel and Tesla CEO Elon Musk have a longstanding collaborative history, having co-founded PayPal together.