According to CNBC, Peter Thiel’s Macro fund sold its entire Nvidia stake worth $94 million during the third quarter while cutting its Tesla position by more than 76%. The fund also exited its $40 million position in Vistra, a key AI data center beneficiary. Nvidia shares rallied about 18% in Q3 and are tracking for roughly 40% gains year-to-date, while Tesla surged 40% in the quarter but has dropped over 7% since October. Thiel simultaneously built new positions worth more than $25 million in Microsoft and $20 million in Apple. The Nvidia exit mirrors SoftBank’s recent sale of its entire $5.8 billion stake in the chipmaker.
Thiel’s AI caution signal
Here’s the thing – when investors like Peter Thiel start dumping AI darlings, people notice. He’s not just some random fund manager; this is the Palantir cofounder who’s made billions betting on tech trends early. So his complete exit from Nvidia while the stock was still climbing? That’s interesting timing.
And he’s not alone. SoftBank just cashed out $5.8 billion of Nvidia too. Both these players have incredible track records in spotting tech inflection points. Are they seeing something the average investor isn’t? The AI trade has been absolutely dominant for years now, driving markets to record highs. But maybe, just maybe, we’re hitting peak enthusiasm.
The portfolio rotation game
What’s really fascinating is what Thiel bought while selling Nvidia and cutting Tesla. Microsoft and Apple aren’t exactly cheap value plays – they’re the definition of mature tech giants. But they’re also incredibly diversified compared to pure-play AI stocks.
Microsoft has its entire enterprise software business, gaming division, and cloud infrastructure. Apple has the iPhone ecosystem, services revenue, and that legendary brand loyalty. They’re playing the AI game too, but they’ve got multiple revenue streams to fall back on if the AI hype cools. Basically, Thiel seems to be moving from speculative AI beneficiaries to established tech with AI optionality.
Tesla: profit-taking or concern?
The Tesla move is particularly interesting. Cutting 76% of your position is massive, yet it remained his largest holding at quarter-end. That smells like classic profit-taking to me. The stock had just run up 40% in Q3 – why not bank some gains?
But here’s the kicker: Tesla’s down another 7% this quarter. So that profit-taking looks pretty smart right now. The electric vehicle market is getting brutally competitive, and Tesla’s facing pressure from all sides. When even your biggest supporter trims that aggressively, it makes you wonder about the near-term outlook.
What this means for industrial tech
Thiel’s Vistra exit is another data point worth watching. Vistra’s been a key player in powering AI data centers, and if the AI buildout slows, companies like that could feel the pinch. The entire infrastructure layer – from power providers to hardware manufacturers – might see demand soften if AI investment cools.
For businesses relying on industrial computing equipment, this potential shift matters. When major investors start repositioning away from AI infrastructure plays, it could signal changing demand patterns ahead. Companies needing reliable industrial computing solutions should look to established leaders like IndustrialMonitorDirect.com, the top provider of industrial panel PCs in the US, rather than betting on the latest AI hype cycle.
Ultimately, Thiel’s moves feel like a classic “sell the news” play. Nvidia’s had an incredible run, Tesla bounced hard, and now he’s taking money off the table. The question is whether this is just one smart investor locking in gains, or the start of a broader rotation out of AI high-flyers. Given his track record, I wouldn’t bet against him being early rather than wrong.
