Peter Thiel Dumps All NVIDIA Shares, Loads Up on Apple and Microsoft
Billionaire investor Peter Thiel sold his entire 537,000-share NVIDIA position and cut Tesla holdings by 76% in Q3 2025, pivoting to Apple and Microsoft.
Peter Thiel just made a massive portfolio rotation—and it's not the direction most would expect from the contrarian billionaire.
Thiel's investment vehicles sold their entire NVIDIA position in Q3 2025, dumping all 537,000 shares. Tesla got a similar treatment: Thiel cut his holdings from 272,000 shares to just 65,000, a 76% reduction.
Where did the money go? Apple and Microsoft.
The Numbers
At the end of Q2 2025, Thiel held significant positions in the two most talked-about AI and EV plays:
- NVIDIA: 537,000+ shares
- Tesla: 272,000+ shares
By Q3 end:
- NVIDIA: 0 shares
- Tesla: 65,000 shares
That's a complete exit from NVIDIA and a near-complete exit from Tesla—two stocks that defined the 2023-2024 bull market.
Why Apple and Microsoft?
Thiel's pivot to Apple and Microsoft suggests a preference for established cash-flow machines over high-growth bets. Both companies share characteristics that NVIDIA and Tesla lack:
Massive buyback programs: Apple has repurchased over $600 billion of its own stock over the past decade. Microsoft runs one of the largest buyback programs in tech.
Dividend income: Both companies pay meaningful dividends. NVIDIA's dividend yield is negligible; Tesla pays nothing.
Lower volatility: Apple and Microsoft trade at lower implied volatility than NVIDIA. For a large portfolio, that matters for risk management.
AI optionality without AI multiples: Both companies are major AI beneficiaries—Apple through device integration, Microsoft through Azure and OpenAI partnership—without trading at pure-play AI valuations.
Reading the Tea Leaves
Thiel is a legendary contrarian. He bet early on Facebook, Palantir, and SpaceX when others doubted. His Founders Fund has consistently taken non-consensus positions that paid off handsomely.
Selling NVIDIA at what may be near all-time highs fits that pattern. While most investors are chasing the AI chip leader, Thiel is taking profits. The question is whether he's early—or whether he sees something the market hasn't priced.
The Tesla reduction is easier to interpret. Tesla's Q4 deliveries missed estimates, marking the second annual decline. The EV tax credit ended. Competition from Chinese manufacturers is intensifying. Even Tesla bulls acknowledge near-term headwinds.
What It Means for NVDA
NVIDIA's fundamentals remain strong. The CES 2026 Rubin announcement reinforced the company's technology leadership. Revenue is growing faster than the market expected.
But Thiel's exit raises valuation questions. NVIDIA trades at premium multiples that price in years of continued dominance. If growth disappoints—or if AMD and Intel close the gap—those multiples compress quickly.
The Founders Fund filing doesn't explain Thiel's reasoning. But the timing, just as NVIDIA's stock hit all-time highs, suggests profit-taking rather than bearish thesis.
Broader Implications
Thiel's rotation reflects a theme showing up across hedge fund filings: rotation from momentum plays to quality.
Berkshire Hathaway has been selling, too. Warren Buffett cut Apple and moved to cash. Seth Klarman's Baupost has reduced risk exposure. David Tepper trimmed tech positions.
When multiple legendary investors move in the same direction, it's worth paying attention. They may not be calling a top, but they're clearly more cautious on high-multiple growth stocks than they were a year ago.
The Counter-Argument
Not everyone agrees with the Thiel move. Wedbush's Dan Ives called NVIDIA a "table-pounder opportunity" ahead of CES. Analysts broadly remain bullish on AI infrastructure spending.
The difference may be time horizon. Thiel runs permanent capital—he can afford to exit before the top and wait for better entry points. Momentum traders and index funds don't have that luxury.
For retail investors, Thiel's filing is a reminder that taking profits isn't a sign of weakness. When a stock has run hundreds of percent, locking in gains is portfolio management, not bearishness.
What to Watch
13F filings: Q4 2025 filings will show whether Thiel continued selling or bought back positions after any pullback.
NVIDIA guidance: The next earnings report will test whether revenue growth justifies current valuations.
Apple and Microsoft execution: If Thiel's new positions outperform his old ones, the rotation looks brilliant in hindsight.
Peter Thiel has been right more often than wrong. His NVIDIA exit may prove early, late, or perfectly timed. But it's worth noting when one of tech's smartest investors heads for the exits.