Peter Thiel’s namesake fund pulled out of Nvidia in the third quarter, the latest sign of caution against the darling of artificial intelligence. Teal Macro zeroed out nearly $94 million worth of stock in three months, according to regulatory filings. This was the fund’s largest change by value in the quarter, according to InsiderScore. Mr. Thiel’s decision mirrors that of Japan’s SoftBank, which announced earlier this month that it had sold its entire stake in Nvidia for about $5.8 billion. Some investors have grown concerned in recent weeks that the AI trades that have driven the market to record highs are showing signs of a bubble. NVDA YTD Mountain Nvidia, year-to-date Nvidia’s stock price rose about 18% in the third quarter and ended the year with a gain of about 40%. Wall Street sees more room for execution: The average analyst has a buy rating and a price target suggesting an upside of about 23%, according to LSEG. Thiel similarly exited a position worth more than $40 million in Vistra, a key beneficiary of the AI data center buildout. Vistra stock rose about 1% in the quarter, but has fallen more than 9% since early October. The PayPal co-founder also cut his position at Tesla by more than 76%. Still, the electric car maker was the fund’s largest holding at the end of September, with a total of three stocks, according to InsiderScore. Thiel may have been looking to book profits, as Tesla shares soared 40% in the third quarter. The stock fell more than 7% this quarter, but is expected to be up less than 3% by the end of the year. TSLA YTD Mountain Tesla, Year to Date But other technology company names received better treatment from Palantir’s board chairman this quarter. During this time, Thiel built positions at Microsoft and Apple worth more than $25 million and $20 million, respectively.
