"Billionaire Peter Thiel runs the hedge fund Thiel Macro and is known for playing a significant role in identifying growth stocks. Based on the recent 13F filing, Thiel sold his entire stake in artificial intelligence (AI) giant NVIDIA Corp. (NASDAQ:NVDA) and reinvested the proceeds in Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL). While not everyone will agree with the move to abandon NVIDIA Corp. the other AI giants, Microsoft and Apple, are well positioned to benefit from the AI revolution and have made significant gains in the past few years."
"The most popular chips company on the planet, Nvidia is known for its graphics processing units (GPUs). It has generated impressive revenue over the past five years and has become the biggest chipmaker today. The growing competition in the AI space could be one reason Peter Thiel exited his position right before its third-quarter earnings. He trimmed a 40.07% position in the AI company."
Peter Thiel exited his entire NVIDIA position and redirected the proceeds into Microsoft and Apple. Nvidia remains the leading GPU maker with strong revenue growth over the past five years but faces rising competition from custom chips and hyperscalers. Concerns about an AI valuation bubble and uncertainty over long-term revenue potential have led some investors to trim AI holdings. Analysts are split on whether Nvidia can maintain its industry dominance. Nvidia shares fell about 13% and traded near $179 amid these worries. Microsoft and Apple are positioned to benefit from the AI transition and have seen notable gains.
Read at 24/7 Wall St.
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