Silicon Valley guru Peter Thiel closes all positions in Nvidia, saying "AI has already bubbled, don't concentrate bets on three tech stocks."

Peter Thiel made a major move in the third quarter by liquidating his holdings in NVIDIA and shrinking his investment portfolio, highlighting his concerns about the overvaluation of the AI boom, and shifting towards Apple, Microsoft, and TSL (Background: Exploding capital expenditures but no profits in sight; will the AI investment frenzy lead to the next financial crisis?). (Background: Another Bitcoin mining company announced a transition to an AI computing power center, Bitfarms CEO: earning more than mining BTC). While people were still celebrating NVIDIA's market capitalization hitting 5 trillion dollars, Peter Thiel, known as the 'Godfather of Silicon Valley,' cooled the excitement with a single action. According to the Thiel Macro Q3 13F report released in mid-November 2025, his fund has completely sold off all 537,000 shares of NVIDIA, valued at approximately 100 million dollars, causing the fund's US stock long positions to plummet from 212 million dollars to 74.4 million dollars, nearly a 50% slump. This sudden exit was seen by the market as a wake-up call against the AI investment frenzy. Liquidating NVIDIA and rapidly shrinking the portfolio The report shows that Thiel Macro not only sold NVIDIA but also cut its Tesla holdings by 76% and completely ended its positioning in Vistra Energy. In just one quarter, the fund reduced its total number of holdings to only three: Microsoft accounts for about 34%, Apple about 27%, and despite the reduction, Tesla still leads with 39%. Compared to the second quarter, both the number of shares and the capital scale have significantly shrunk, reflecting Thiel's rare defensive posture. These adjustments occurred when the demand for AI chips was considered to be at an 'unmatched' high, drawing market attention. Most institutions chose to increase their semiconductor chain investments at this time, but Thiel took a contrary approach, tossing high Beta assets aside. He practically told the market: when valuations are depegged from reality, even the most impressive financial reports cannot support an endless rise in price-to-earnings ratios. Warning signs of an AI bubble Thiel's concerns about the overheating of AI are not unfounded. According to related reports, he has repeatedly compared the current atmosphere to the internet bubble around 2000, believing that 'the speed of speculation far exceeds the pace of application rollout.' Even though NVIDIA's data center revenue grew by 56% year-on-year, he still sees it as insufficient to justify the current price. For Thiel, the real value of AI needs time to solidify, rather than being inflated by mere dreams. His 'unity of knowledge and action' is evident here. While the market cheers for a 'new golden era', he chooses to pull back his chips, leaving the scene in uproar. This counterintuitive operational model stems not only from sensitivity to the technology cycle but also echoes his consistent conservative macro perspective: when emotions run high, risks must be prioritized. Focusing on platform giants, waiting for 'slow burning' After slimming down his portfolio, Thiel Macro is left with only three stocks, all of which are stable in balance sheet and abundant in cash flow 'platform' leaders. Thiel firmly believes that AI's influence will permeate in a 'slow burning' manner, ultimately benefiting companies that can internalize AI into a vast ecosystem rather than just hardware vendors. Microsoft has cross-industry integration of cloud and enterprise services, Apple relies on both hardware and service engines to lock in end users, while Tesla maintains a long-term narrative with its autonomous driving and energy systems. The common point among the three is that even as the AI heat fades, multiple cash flows still support their valuations. Such concentrated allocation may seem to bear single risks, but compared to the principle of 'not going to crowded places', Thiel is more concerned with steadying the core of the trend while avoiding 'balloons that others have already inflated.' Thiel's exit and downsizing have sounded the alarm for the market. SoftBank and Michael Burry also recently warned about AI assets, and the actions of heavyweight players will inevitably influence market sentiment. In the face of global capital chasing new technologies, investors may need to rebalance the 'growth narrative' and 'valuation discipline' once again. Related reports: Massive shorting turns into a major short squeeze! Michael Burry dissolves his fund, predicting the AI bubble will lead to total losses. What is the Ethereum ERC-8004 protocol? Creating AI agents 'on-chain identity cards': backed by Google, MetaMask, and Coinbase. Musk's '1 trillion dollar salary' approved by Tesla shareholders! Must meet AI robot goals in 10 years. <Silicon Valley Godfather Peter Thiel liquidates NVIDIA, claiming 'AI is already in a bubble', warns against concentrating bets on three tech stocks>. This article was first published in BlockTempo, the most influential blockchain news media.