Peter Thiel Exits Nvidia, Bets on Microsoft and Apple – A Shift in the AI Landscape
Billionaire investor Peter Thiel has made a significant move in the tech sector, completely divesting from Nvidia and increasing his stakes in Apple and Microsoft. This repositioning, revealed in regulatory filings from his hedge fund Thiel Macro LLC, signals a potential shift in perspective on the future of artificial intelligence and the companies poised to benefit most from its growth.
Nvidia Sell-Off: A $100 Million+ Move
In the third quarter of 2025, Thiel Macro LLC sold its entire holding of 537,742 Nvidia shares, valued at over $100 million [Fortune], [Yahoo Finance], and [Finbold]. This represented roughly 40% of the fund’s entire portfolio, marking one of Thiel’s most substantial portfolio adjustments of the year [Fortune].
Investing in Apple and Microsoft: A Strategic Shift
Alongside the Nvidia sale, Thiel Macro LLC established new positions in Apple and Microsoft, investing approximately $45 million combined [Yahoo Finance]. This move reduced the fund’s overall U.S. Equity exposure by more than half, from $212 million to $74 million [Fortune], [Finbold].
Why the Change? Concerns About an AI Bubble
While Thiel has acknowledged the potential of AI, he has likewise expressed caution, describing it as “extremely bubbly” and drawing parallels to the dotcom crash of the late 1990s [Yahoo Finance]. Nvidia’s recent surge in value, becoming the world’s most valuable company with a $5 trillion market cap in October, has been accompanied by concerns about an AI bubble, particularly due to the company’s involvement in circular deals with other AI firms [Fortune].
These deals involve Nvidia investing in AI startups or cloud providers in exchange for commitments to purchase Nvidia’s chips, effectively creating a self-sustaining cycle of investment and demand [Fortune].
Apple and Microsoft: Durable Bets in the AI Era
Thiel’s investment in Apple and Microsoft suggests a belief that companies integrating AI into consumer products may offer a more sustainable long-term investment than companies focused solely on AI infrastructure [Fortune]. Microsoft’s integration of AI across its product suite, including Office and Azure, and its partnership with OpenAI, position it as a direct beneficiary of the AI revolution. Apple, with its vast user base of over 2 billion active devices and robust services business, possesses a unique distribution advantage that Nvidia cannot replicate [Yahoo Finance].
Broader Trend: Investors Taking Profits
Thiel’s move is part of a growing trend of investors taking profits from Nvidia’s remarkable gains. SoftBank also sold its entire $5.83 billion Nvidia position earlier in the week to fund new AI ventures [Finbold]. This suggests a potential shift in sentiment as competition in the AI chip market intensifies.