Billionaire Peter Thiel Sells Nvidia and Tesla, Invests in Soaring AI Stock
In a significant shift within his investment strategy, billionaire Peter Thiel has sold his equity stakes in Nvidia and Tesla while increasing his investment in Microsoft. Thiel, known for co-founding PayPal and Palantir Technologies, made these changes through his hedge fund, Thiel Macro, during the third quarter.
Thiel Macro’s Investment Decisions
Thiel Macro executed three major transactions:
- Liquidated its entire stake in Nvidia.
- Reduced its Tesla holdings by 76%.
- Initiated a new position in Microsoft.
Reasons Behind Selling Nvidia and Tesla
The recent decision to sell Nvidia, which became the world’s most valuable company in 2025, reflects a strategic move. The surge in demand for Nvidia’s GPUs amid the AI boom resulted in a high price-to-earnings (P/E) ratio of approximately 46.4. Thiel Macro had started buying Nvidia shares in late 2024, allowing it to secure substantial profits. The sale likely aims to capitalize on its peak valuation.
Despite trimming its Tesla stake, the electric vehicle manufacturer remains Thiel Macro’s largest holding. However, Tesla’s future profitability hinges on the success of its ambitious robotaxi project, which is projected to be many years away from viability. With a P/E ratio around 295 and disappointing sales figures, Thiel likely assessed that reallocating funds would prove more beneficial.
Investing in Microsoft: A Safe Move
Thiel’s investment in Microsoft aligns with seeking more stable growth. Microsoft, recognized as one of the most diversified tech giants, reported a market cap of $3.4 trillion. Its stock registered a 0.77% increase, bringing the current price to $460.16.
Key Microsoft Performance Metrics
| Key Data | Values |
|---|---|
| Market Cap | $3.4T |
| Day’s Change | +0.77% |
| 52-week Range | $344.79 – $555.45 |
| Gross Margin | 68.76% |
| Dividend Yield | 0.74% |
Microsoft’s extensive reach in enterprise software enables it to effectively monetize AI advancements rather than solely relying on future potential. Its generative AI tool, Microsoft Copilot, has been integrated into its suite of products, creating a steady revenue stream through subscriptions. This strategy provides a safer investment profile compared to the volatility associated with Nvidia and Tesla.
As investors look to Peter Thiel for market insights, his recent decisions mark a thoughtful recalibration towards established tech firms producing steady performance amid the rising interest in AI stocks.
