Peter Thiel Sells AI Stocks Worth Trillions; Wall Street Sees Buy Opportunity
Billionaire Peter Thiel sold his hedge fund’s stakes in Tesla and Microsoft during the fourth quarter. He runs Thiel Macro and co-founded Palantir Technologies.
Thiel’s fourth-quarter moves
Thiel Macro disposed of positions in two AI-linked, trillion-dollar companies. Those holdings made up 73% of the fund in the third quarter.
The decision surprised investors and analysts. Peter Thiel sold stakes in AI stocks worth trillions, and some on Wall Street see a buy opportunity.
Tesla outlook
Tesla endured a difficult year. CEO Elon Musk’s political activity and policy changes hurt the company.
President Trump imposed tariffs on imported auto parts and removed the federal EV tax credit. Tesla lost market share globally and ceded its lead in EV sales.
Tesla plans to expand its robotaxi service to dozens more cities. Alphabet’s Waymo is scaling faster and may offer a million autonomous rides weekly.
Morgan Stanley projects U.S. autonomous ridesharing will be a trillion-dollar market. They estimate Tesla could account for 25 percent of U.S. autonomous trips by 2032.
Musk says the Optimus humanoid robot could be a major long-term revenue source. However, neither robotaxis nor robots will meaningfully drive sales in the near term.
Tesla’s energy business is growing but EVs remain its core. Automotive deliveries and sales declined last year, a factor that may explain Thiel’s sale.
Analyst price targets for Tesla
Among 56 analysts, Tesla’s median price target is $460 per share. That implies about 32 percent upside from a $349 share price.
Microsoft outlook
Microsoft depends on enterprise software and cloud services. Its growth strategy centers on artificial intelligence.
The stock fell roughly 25 percent in the first quarter. That was its worst quarter since 2008, and the share price sits about 32 percent below its record high.
Microsoft reported a 160 percent increase in Microsoft 365 Copilot paid seats last quarter. More than 80 percent of Fortune 500 firms have created AI agents using Copilot Studio.
Investors fear generative AI could disrupt seat-based software revenue. Anthropic’s Claude Cowork can automate complex, multistep tasks across functions.
Azure has been gaining share in cloud computing. Part of that reflects the OpenAI partnership and hybrid cloud strengths.
A Morgan Stanley CIO survey shows Azure as most likely to gain share over three years. Still, Azure revenue growth decelerated in the most recent quarter.
Microsoft plans more than $140 billion in fiscal 2026 capex. That is roughly a 59 percent increase from $88 billion in fiscal 2025.
Amazon and Alphabet reported accelerating cloud revenue growth, raising investor concerns about Microsoft’s pace.
Analyst price targets for Microsoft
Among 61 analysts, Microsoft’s median target is $600 per share. That implies about 60 percent upside from a $370 share price.
Thiel sold his Microsoft holding in the fourth quarter. His exits surprised markets given his prior 73 percent concentration.
Many Wall Street analysts still rate both stocks as undervalued. Some investors view the recent weakness as a buy opportunity, while others prefer caution.
Filmogaz.com will continue to monitor regulatory filings and analyst commentary. Further portfolio disclosures could clarify investor sentiment.
