ajor investors may be backing away from Nvidia.
Peter Thiel’s hedge fund, Thiel Macro, zeroed out its stake in Nvidia in the third quarter, selling off more than 537,000 shares, a pot worth $94 million, according to regulatory filings reported on Monday.
The move follows similar selloffs in the past week:
- SoftBank sold off its entire stake in Nvidia, around 32.1 million shares worth more than $5.8 billion. The funds will reportedly be used to support a $22.5 billion investment in OpenAI, according to CNBC.
- And Scion Asset Management, the fund run by Michael Burry, who gained his fame predicting and profiting from the subprime mortgage crisis in 2008, revealed $1.1 billion in put options for Nvidia and Palantir stocks.
Nvidia has largely been the biggest winner of the AI race thus far. Its hotly demanded chips have boosted its revenue to astronomical heights, with Jensen Huang revealing in October that the company has $500 billion in orders combined for 2025 and 2026 at the company’s GTC conference in Washington, and briefly surpassed a record-breaking $5 trillion market cap in late October.
But as discussions of an AI bubble grow, these sell-offs could be a sign that faith is beginning to waver. Investors have raised concerns that the circular financing deals between Nvidia, OpenAI and other tech firms are artificially propping up the industry.
And tech leaders themselves have been flagging concerns of Nvidia’s involvement in the burgeoning bubble: On Monday, Klarna CEO Sebastian Siemiatkowski told The Financial Times that Nvidia’s stock boom makes him “nervous” due to “the amount of wealth that is currently automatically allocated into this trend, without some more thoughtful thinking.”