Peter Thiel Exits NVIDIA: The AI Legend Just Swapped Tesla for a 460,000% Gainer

Peter Thiel's latest portfolio moves have sparked debate over the tech sector's future. By offloading positions in NVIDIA and Tesla, the influential billionaire has investors questioning the momentum of the artificial intelligence boom as one of Silicon Valley's most-watched figures steps back.

Peter Thiel first made his mark as a co-founder of PayPal. Today, his reputation is largely tied to Palantir, a company whose stock price has soared lately. As a high-profile billionaire, the trades made through his firm, Thiel Macro, are closely monitored for signals on where the economy is heading next.

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A Pivot Towards Tech Staples

Thiel Macro executed three major changes during the third quarter:

• Exiting its entire position in NVIDIA (NASDAQ: NVDA).
• Slashing its Tesla (NASDAQ: TSLA) holdings by 76%.
• Establishing a new stake in Microsoft (NASDAQ: MSFT).

These moves signal a retreat from riskier AI-centric bets to more established, reliable technology names, a clear shift in investment approach.

The Rationale Behind the Sell-Off

NVIDIA became the planet's most valuable enterprise in 2025. This was fueled by a surge in demand for its GPUs and networking components during the ongoing AI expansion. At the height of this shift, the company maintained a near-total grip on the specialised processors essential for running complex artificial intelligence tasks.

Thiel Macro began building its position in NVIDIA during the final months of 2024. This move yielded substantial returns, according to a report by The Motley Fool. It is highly probable that the decision to sell was driven by a desire to secure these gains. The stock commanded a premium valuation—at the time, it traded with a price-to-earnings (P/E) ratio of roughly 46.4.

Even after a substantial pull-back, the electric car giant remains the cornerstone of the hedge fund's portfolio. Tesla's future prospects now hinge almost entirely on the success of its autonomous taxi fleet. However, a commercially ready robotaxi service still seems at least a decade away.

Given Tesla's car sales and P/E ratio near 295, Thiel likely concluded his capital could be more productive elsewhere.

The Case for Microsoft's Enduring Appeal

Microsoft stands as perhaps the most expertly diversified entity in the technology sector, boasting a track record of growth that ranks among the most impressive in market history.

With its vast presence in the corporate software market, Microsoft does not have to gamble on the 'potential' of artificial intelligence. Instead, the firm has direct, proven channels to profit from AI advancements as they unfold. By embedding its generative assistant, Microsoft Copilot, across its primary software suite, the company has turned these innovations into a steady stream of subscription revenue.

By strengthening its product ecosystem, Microsoft is increasing its dominance in the corporate software landscape, creating high barriers for customers considering switching. This integration and stable revenue make it appear more reliable than NVIDIA and Tesla's volatile environments.

In addition to Microsoft, Thiel established a new position in Apple, viewing it as a more protective technology investment. While the company has taken a more cautious approach to its AI branding, its vast ecosystem, devoted user base, and immense cash flow position position it as a steadying influence within a turbulent market.

Nevertheless, Apple shares ended the session down 3.46% at $246.70 (£183.54) as investors weighed immediate concerns over its premium valuation, even though the stock continues to find a floor in its durable infrastructure and long-term expansion potential.

Strategic De-Risking in a Shifting Landscape

Taken together, these trades highlight Thiel's strategy: reduce exposure to volatility and seek stability amidst AI uncertainty, rather than abandon the sector entirely.

The main takeaway is Thiel's confidence that AI profits will flow from software and practical uses by established firms, not just hardware innovators. His disciplined, well-timed repositioning offers investors a lesson in adapting to evolving technology landscapes.