“The move reflects a broader shift in market sentiment, as major investors reassess the risks tied to an AI-driven bubble.”
Global investors have taken notice of tech tycoon Peter Thiel’s public sale of his entire Nvidia stock. Thiel sold 537,742 Nvidia shares between July and September, and by September 30.
He had fully exited his investment, according to recent regulatory filings. Based on Nvidia’s average stock price over that time, the sale’s total estimated worth is close to $100 million.
Many market observers are concerned about a potential AI-driven bubble in technology valuations at the time of Thiel’s decision.
Thiel warned earlier this year that values were being strained and likened the sharp increase in tech equities to the Dotcom boom of 1999.
Thiel decreased his ownership of Tesla from roughly 272,000 shares to just 65,000, in addition to Nvidia. In the meantime, he bought 49,000 shares of Microsoft and 79,181 shares of Apple, increasing his exposure to both companies. Additionally, he sold all 208,747 shares of Vistra Energy Corp. to complete his withdrawal.
Thiel’s action comes after other significant investors made similar withdrawals. SoftBank Group recently sold all of its shares in Nvidia, while prominent investor Michael Burry revealed significant short positions in Palantir and Nvidia.
Thiel’s departure, according to market analysts, underscores mounting worries about the enormous expenses associated with AI development, especially concerns about how firms like OpenAI will handle their multitrillion-dollar spending plans.
Nvidia and significant chipmakers that supply AI companies may be impacted by these forces.
“Thiel’s complete exit from Nvidia signals increasing caution among top investors who worry the AI boom may be overheating,” one market observer noted.
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