AI bubble burst coming? Concerns jump after billionaire Peter Thiel’s fund sells entire $100 million worth Nvidia stock
According to Reuters, billionaire investor Peter Thiel’s hedge fund Thiel Macro reportedly sold its entire $100 million stake in artificial intelligence chip maker Nvidia in the third quarter.
According to a regulatory filing filed with the United States Securities and Exchange Commission (US SEC) on November 14, Thiel Macros sold approximately 5,37,742 Nvidia shares (his entire stake in the technology company) worth approximately $100 million as of the close of September 30, 2025.
The Thiel Foundation did not respond to Reuters’ questions at the time of writing.
The US SEC filing showed that Thiel Macros’ significant holdings now include iPhone maker Apple, software leader Microsoft and Elon Musk-led Tesla.
Do Thiel’s sales signal the bursting of the AI bubble?
According to the report, the tech billionaire’s sale of all shares of his hedge fund has sharply increased concerns about the bursting of the artificial intelligence bubble on Wall Street. It also comes at a time when there are concerns about the rise of tech stocks among investors who fear valuations have peaked.
Trillions of dollars poured into AI commitments like advanced chips and billion-dollar data centers are at risk.
The report added that investors will be covering Nvidia’s Q3 results on November 19 to understand the demand pipeline for advanced AI chips (which acts as a bellwether for the entire industry) to ease concerns.
Notably, it added, a number of hedge funds reduced their holdings in some of the ‘Magnificent Seven’ or Mag-7 technology stocks in the third quarter, unlike the more bullish second quarter.
SoftBank sells Nvidia shares for $5.8 billion
Just a few days ago, on November 11, SoftBank Group Corp, led by Masayoshi Son, announced that it had pocketed $5.83 billion by selling its shares in Jensen Huang’s company. But he continued to invest in OpenAI, led by Sam Altman.
Notably, in February 2025, Son, Altman, and Oracle’s Larry Ellison joined US President Donald Trump to announce a $500 billion investment in an artificial intelligence project called Stargate.
“I can’t say whether we’re in the AI bubble or not,” Chief Financial Officer Yoshimitsu Goto said during an earnings conference call. According to Bloomberg, SoftBank added that it was selling Nvidia “so that the capital could be used for our financing,” but without elaborating.
(With input from Reuters and Agencies)
