Palantir Billionaire Peter Thiel Sells Nvidia, Tesla Stocks for High-Growth AI Investment
Peter Thiel, co-founder of Palantir and a notable billionaire investor, has made significant changes to his investment strategy. Through his hedge fund, Thiel Macro, Thiel sold off key holdings in Nvidia and Tesla, focusing instead on high-growth opportunities in artificial intelligence.
Key Investment Moves
During the third quarter, Thiel Macro executed three major transactions:
- Sold its entire stake in Nvidia
- Reduced its Tesla holdings by 76%
- Established a new investment in Microsoft
These decisions highlight Thiel’s shift away from some of the most talked-about companies in AI towards a more stable tech giant, Microsoft.
Reason for Selling Nvidia and Tesla
Nvidia regained its title as the world’s most valuable company in 2025, driven by soaring demand for its GPUs amid the AI boom. Thiel Macro had initially purchased Nvidia shares in late 2024, allowing the fund to profit from the sale at a high valuation, given Nvidia’s current price-to-earnings (P/E) ratio of approximately 46.4.
Similarly, while Tesla remains Thiel Macro’s largest holding, the drastic reduction in shares reflects a reevaluation of the company’s prospects. Tesla’s future hinges on its ability to realize its robotaxi plans, which may not materialize for over a decade. Coupled with disappointing vehicle sales and a P/E ratio near 295, Thiel perceived a greater opportunity elsewhere.
Strategic Investment in Microsoft
Thiel’s investment in Microsoft represents a shift toward a more diversified tech company. As of the latest reports, Microsoft’s shares have increased by 0.77%, with a current price of $460.16 and a market capitalization of $3.4 trillion.
Why Microsoft is a Strong Investment
Microsoft is seen as one of the best-performing companies in stock market history. It benefits from:
- A strong portfolio of enterprise software
- The integration of its generative AI tool, Microsoft Copilot
- High gross margins at 68.76%
These elements reduce its reliance on the speculative nature of AI development. Investors see Microsoft as a safer bet compared to the volatility associated with Nvidia and Tesla’s current market conditions.
This strategic pivot by Peter Thiel underscores a broader trend in the investment community, where high-growth AI opportunities are being carefully evaluated against established companies with proven stability and profitability.
