By Our Reporter
Billionaire investor Peter Thiel has warned that companies whose rapid growth depends mainly on the artificial intelligence boom—such as Nvidia—could face trouble if the hype around AI slows down. Thiel has described AI as “extremely bubbly,” suggesting that while the technology is important, the current excitement surrounding it may be exaggerated and could eventually subside.
His caution appears to be reflected in hisrecent reshuffling ofhis investment portfolio. In the third quarter of 2025, Thiel’s hedge fund, Thiel Macro LLC, sold all 537,742 shares of Nvidia, worth more than $100 million, The chipmaker had previously made up about 40 per cent of tge funds portfolio making the move one of the most significant investment shifts by the billionaire last year.
After selling Nvidia, the fund redirected much of the money into tech giants Apple and Microsoft. Together, the two investments were worth about $45 million forming the bulk of the fund’s remaining holdings. At the same time, Thiel reduced his total U.S. stock exposure sharply—from $212million to $74million
The shift suggests Thiel may see more long-term value in companies that integrate AI into everyday productsrather than those that only supply the infrastructure behind it. While Nvidia’s chips power many of today’s AI systems, firms like Apple and Microsoft have vast consumer platforms—from smartphones to cloud services—that can turn AI into tools used by billions of people.
For newer investors, the message is simple: the biggest winners in a new technology wave are not always the companies building the tools, but sometimes those that use the technology to reach customers at scale, Thiel believes AI will remain important, but history, from the dot-com era to today, shows that not every company riding the hype will emerge as a long-term winner.
However, Wells Fargo, an American multinational financial services company, has sent a clear message to investors to not delay in buying into NVIDIA, with NVIDIA ‘s annual GPU Technology Conference (GTC) just days away, Wells Fargo’s words to investors: “Do not wait.”
Collaborating on this view, Aaron Rakers, who ranks in the top 1% of Wall Street analysts by performance, reiterated his overweight rating on Nvidia shares this week and maintained his $265 target. With the stock trading around $178, that implies roughly 49% upside from current levels. His message to investors was direct: “We’re NVDA buyers ahead of the event.”
Both NVIDIA and Palantir Technologies have arguably, been more direct beneficiaries from the rise of Artificial Intelligence.
Since the start of 2023, Nvidia has added over $4.1 trillion in market cap, while Palantir shares have skyrocketed by almost 2,300%!
With reports from YahooNews!