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Thiel Turns to Major Defensive Tech Firms Amid Growing Concerns Over AI Bubble

Thiel Turns to Major Defensive Tech Firms Amid Growing Concerns Over AI Bubble

Bitget-RWA2025/11/25 14:46
By:Bitget-RWA

- Peter Thiel's Q3 2025 portfolio reshuffling saw full exit from Nvidia and reduced Tesla holdings , shifting funds to Apple and Microsoft amid AI valuation concerns. - The $166M from sales was partially reinvested into Apple and Microsoft, leaving over $120M in cash reserves, signaling a defensive strategy shift. - Nvidia's 0.33% premarket dip and mixed market reactions highlight institutional sentiment shifts, with analysts debating Thiel's caution versus potential miscalculation. - Thiel's track record

The recent adjustments in billionaire Peter Thiel’s investment portfolio have fueled considerable speculation in financial circles. The PayPal co-founder and one of Facebook’s earliest backers

and , choosing instead to increase his investments in and . These moves, and , indicate a deliberate shift toward more established technology companies, as worries mount over lofty valuations in rapidly expanding sectors.

According to filings, Thiel’s fund

at an average price of $174, netting $94 million. Additionally, it at $347 each, bringing in $72 million. A portion of these proceeds was used to acquire 79,000 Apple shares and 49,000 Microsoft shares, , leaving the fund with more than $120 million in cash. , moving away from unpredictable, fast-growing stocks such as and Nvidia—which have benefited from AI and EV trends—toward the more reliable earnings of tech giants like Apple and Microsoft.

Thiel Turns to Major Defensive Tech Firms Amid Growing Concerns Over AI Bubble image 0
Thiel’s choice to exit has attracted particular attention, especially as the company’s revenues have soared on the back of AI demand. is now nearly on par with Apple’s, despite Nvidia’s much faster growth. This similarity in valuation has led some to question Thiel’s decision, since Nvidia remains a leader in AI hardware and data centers. “ , but Thiel’s investment history suggests his decisions are rarely arbitrary,” one analyst commented.

The market’s response to Thiel’s trades has been varied. While Apple and Microsoft saw modest gains after the news,

in premarket activity, prompting concerns about changing institutional attitudes. and Advanced Micro Devices are also under renewed scrutiny, as Google’s push into AI chips could challenge Nvidia’s dominance. Still, Nvidia’s strong order pipeline and backing from the U.S. government for domestic AI infrastructure offer some near-term stability.

Thiel’s approach reflects broader market unease about a potential bubble in AI-related stocks. Having previously cautioned against inflated tech valuations during the dot-com boom,

. However, critics warn that leaving Nvidia too soon might mean missing out on future gains, given its central role in AI advancements. “ , but whether it’s prudent caution or a misstep remains to be seen,” another observer remarked.

With over $120 million in cash,

and ready to seize new opportunities in areas like AI or quantum computing. For now, his increased stakes in Apple and Microsoft highlight a preference for stability—a notable departure from his usual appetite for bold, high-risk technology investments.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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