NVIDIA might now be the most valuable company in the world, but some big-name investors are pulling out of the stock.
After Softbank had sold its entire stake in NVIDIA last week, it has emerged that Peter Thiel has exited his entire stake in NVIDIA. Filings showed that Thiel sold 537,742 shares in NVIDIA through the July-September period, with a Form 13F filing from his Thiel Macro fund showing that he no longer held any shares in Nvidia as of September 30. The sale price of the shares amounts to nearly $100 million based on Nvidia’s average stock price in the July-September period.
Thiel also trimmed his holding in Tesla by nearly 75%, from 272,613 shares to 65,000 shares, and purchased 79,181 and 49,000 shares in Apple and Microsoft respectively.
Just last week, Softbank had sold its entire stake in NVIDIA worth $5.83 billion. It was reported that the money that Softbank had collected from the sale would go towards funding its $22.5 billion investment in OpenAI.
NVIDIA has seen its stock zoom during the AI revolution — since the release of ChatGPT in November 2022, NVIDIA’s shares are up nearly 15x. NVIDIA’s chips power most AI systems, and they’re an indispensable part of both training AI models and running inference. But in recent quarters, some competitors have emerged. Google’s TPUs have been around for a while, but Google now seems to be actively getting other companies to use them — AI companies like SSI and Anthropic have begun using TPUs on a large scale, with Anthropic signing a deal to use 1 million TPUs last month. At the same time, companies like AMD are also building chips for AI, and Amazon too has its Trainium chips. And while the AI revolution shows no sign of slowing down, the emergence of competition — and its soaring stock price — seem to have made some major investors exit from NVIDIA’s stock.