Peter Thiel sells Nvidia stake amid AI bubble fears
5 days ago
- #Nvidia
- #Peter Thiel
- #AI bubble
- Billionaire Peter Thiel sold his entire stake in Nvidia, totaling 537,742 shares, which was 40% of his fund's portfolio.
- Thiel's fund also sold its entire stake in Vista Corp, reducing its portfolio by another 19%.
- The fund's equity book shrank from $212 million to $74.4 million, with Tesla now making up nearly 39% of its portfolio.
- Nvidia became the first $5-trillion company in October, with sales rising 56% to $46.7 billion, driven by data center revenue.
- Concerns exist about circular deals in the AI space, such as a $10 billion transaction between Nvidia and OpenAI, potentially inflating tech stock values.
- Michael Burry has placed bearish bets against AI companies, including put options linked to 1 million Nvidia shares.
- SoftBank sold its entire Nvidia stake for $5.8 billion to invest in OpenAI, both of which are partners with Oracle in the Stargate AI project.