Peter Thiel's Fund Sells Tesla, Entire Nvidia Stake for Apple and Microsoft Shares in Q3

Billionaire venture capitalist Peter Thiel, known for co-founding PayPal and Palantir Technologies, and an early investor in Facebook (now Meta), has made significant moves in his investment portfolio during the third quarter.

According to a 13F filing with the US Securities and Exchange Commission, Thiel's fund was a net seller in Q3, completely offloading shares of Nvidia and heavily reducing its stake in Tesla. Conversely, the fund increased holdings in Microsoft and Apple, signalling a strategic pivot rather than a bearish stance on tech.

Major Asset Disposals and New Positions

Thiel's fund sold over 537,742 Nvidia shares for approximately $92.6 million (£70.7 million), marking the end of its position in the AI chipmaker. Nvidia, which recently reported a $10 billion (£7.6 billion) sequential revenue increase in fiscal Q3, remains a key player in the AI industry despite supply chain challenges. The sale might seem counterintuitive given Nvidia's strong quarterly results, yet analysts warn that supply chain constraints could hamper future growth.

In addition, Thiel's fund slashed its Tesla holdings by 76.1%, selling 207,610 shares during the quarter, worth roughly $52 million (£39.7 million). Tesla's stock has seen a sharp decline recently, despite Elon Musk securing shareholder approval for a $1 trillion (£764.1 billion) pay package tied to ambitious performance targets. Tesla remains a dominant player in the autonomous vehicle market, with brokerages like Wedbush projecting it could capture up to 70% of the global autonomous driving sector.

In contrast, Thiel increased investments in Microsoft, acquiring 49,000 shares valued at $25.3 million (£19.3 million), and Apple, adding 79,180 shares worth $20.1 million (£15.3 million). These moves suggest a focus on established tech giants actively competing in the AI race, rather than a retreat from the sector.

Profit-Taking or Market Strategy?

The timing of Thiel's Nvidia and Tesla sales amidst strong earnings reports raises questions. Nvidia's revenue growth and recent quarterly results have helped calm fears of a bubble in AI stocks. Yet, the sales may simply reflect profit-taking, especially considering Thiel's well-known trading style of holding positions for less than a year on average.

Thiel's approach indicates strategic moves to lock in gains rather than a broader pessimism about AI or tech markets. His portfolio often involves high-turnover trades, and the recent shifts could be more about capitalising on short-term gains than a bearish outlook.

Additional Dispositions: Vistra Corp.

In Q3, Thiel's fund also sold its entire stake in utility company Vistra Corp., offloading over 208,750 shares for $40.6 million (£31 million), with a profit of more than 36%. Despite the stock's 26% increase this year, the fund exited the position as operating revenue and net income declined sharply.

Vistra reported a Q3 operating revenue of $4.9 billion (£3.7 billion), down from $6.2 billion (£4.7 billion) a year earlier, with net income falling to $652 million (£498.2 million) from $1.8 billion (£1.3 billion). The company also lowered its adjusted EBITDA forecast for 2025 to between $5.7 billion and $5.9 billion (£4.3-£4.5 billion), and provided guidance for 2026 between $6.8 billion and $7.6 billion (£5.1-£5.8 billion).

Despite the weaker quarterly results, analysts polled by TipRanks maintain a 'strong buy' rating on Vistra, with an average price target of $241.45 (£184.51), implying a potential upside of over 38% from current levels.

Thiel's recent trades reflect a strategic profit-taking approach rather than an outright bearish stance on AI or tech stocks. His shift into mature tech giants like Apple and Microsoft suggests confidence in their long-term AI ambitions. Meanwhile, the divestment from Nvidia and Tesla appears to be motivated by locking in gains amid volatile markets, consistent with Thiel's reputation for tactical, short-term trading.

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