Billionaire investor Peter Thiel has completely exited his position in Nvidia, selling approximately 537,742 shares worth nearly $100 million during the July-September period, according to regulatory filings released over the weekend. A Form 13F filing from his Thiel Macro fund showed he no longer held any Nvidia shares as of September 30.The dramatic exit comes as concerns mount over an AI-fueled bubble in technology valuations. Thiel, who co-founded PayPal and Palantir, had earlier this year warned about stretched valuations in Nvidia and compared the recent spike in tech valuations to the 1999-2000 Dotcom bubble crash.The Nvidia holdings accounted for nearly 40% of Thiel’s portfolio, and their sale shrunk his fund’s equity book by almost two-thirds. His Los Angeles-based hedge fund held $212 million in long U.S. stocks in Q2, which plummeted to approximately $74.4 million in Q3. The rationale behind Thiel’s sale was not immediately clear, though his previous warnings about AI valuations suggest growing concerns about market sustainability.

Growing wave of high-profile investor exits from Nvidia

Thiel’s move follows a troubling pattern among prominent investors. Japanese tech conglomerate SoftBank disclosed it had sold off its entire Nvidia stake just a week earlier. Additionally, investor Michael Burry, famous for predicting the 2008 financial crisis, recently disclosed heavy short positions on Nvidia and Palantir Technologies.Beyond dumping Nvidia entirely, Thiel also slashed his Tesla holdings from 272,613 shares to just 65,000 shares and completely exited his 208,747-share position in energy generation firm Vistra Energy. However, he purchased 79,181 shares in Apple and 49,000 shares in Microsoft during the same period.

Bubble concerns mount ahead of critical earnings report

The timing is particularly significant as Nvidia prepares to report earnings Wednesday afternoon, with options positioning extremely bullish and the market pricing in about a 7% post-earnings move. Investors have grown increasingly concerned about how AI leader OpenAI plans to meet its over $1 trillion spending commitments and how this could affect Nvidia and other chipmakers. Nvidia’s investment in OpenAI has also sparked concerns over circular financing among analysts.