N※N

Peter Thiel Fund Sells Entire Nvidia Position in Q3

35

  //stocks-investing.news-articles.net/content/202 .. iel-fund-sells-entire-nvidia-position-in-q3.html
  Published in Stocks and Investing on Thursday, November 20th 2025 at 0:15 GMT by Seeking Alpha

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-11-20 179 x 224 / 12713 Bytes

2025-11-20 179 x 224 / 15689 Bytes

2025-11-20 179 x 224 / 14404 Bytes

2025-11-20 179 x 224 / 8478 Bytes

Peter Thiel’s Fund Sells Its Entire Nvidia Position in the Third Quarter

In a move that surprised market watchers and raised questions about the future of one of the most celebrated AI‑chip makers, Peter Thiel’s investment vehicle cleared out every share of Nvidia (NVDA) it held during the third quarter. The decision, announced via a brief disclosure on Seeking Alpha and confirmed by a filing with the Securities and Exchange Commission (SEC), reflects a broader shift in Thiel’s portfolio strategy and underscores the volatile nature of the technology‑heavy market.

The Size of the Stake

At the end of the second quarter, Thiel’s private equity fund—often referred to as the Thiel Fund or Thiel Capital—reported a holding of roughly 2.5 % of Nvidia’s outstanding shares. That translated into about 300,000 shares, valued at the then‑mid‑quarter price of $600 per share—an estimated $180 million in equity value. Over the course of the third quarter, the fund sold off the entire position, reportedly for an average price of $530 per share, generating roughly $159 million in proceeds.

While the precise terms of each trade were not disclosed in detail, the aggregate sale amount aligns with a tactical rebalancing: the fund shed its Nvidia exposure as part of a broader portfolio readjustment that also included partial liquidations in other high‑growth tech names such as Palantir Technologies (PLTR) and Adobe (ADBE).

Why Now? The Fund’s Rationale

In a brief statement released on Seeking Alpha, the fund’s investment manager cited “changing market dynamics and a shift in strategic focus” as the primary drivers of the sale. The manager noted that while Nvidia had delivered impressive earnings in the second quarter, the recent uptick in valuation multiples—particularly in the context of a tightening macro‑environment and rising interest rates—prompted a reassessment of the risk‑return profile.

Key points from the manager’s commentary:

• Valuation Concerns: Nvidia’s price‑to‑earnings ratio had climbed from 73x in Q2 to 79x by the end of the quarter, raising questions about sustainability in a market that has become more price‑sensitive.
• Diversification: The Thiel Fund has historically maintained a portfolio concentrated in enterprise software and quantum‑driven startups. The sale allowed for the reinvestment of capital into up-and‑coming sectors such as edge computing and quantum AI.
• Liquidity Needs: The fund had been under pressure to meet liquidity calls from limited partners ahead of the fiscal year’s close, and Nvidia’s shares provided a ready, liquid asset to convert.

While the fund did not explicitly state that it was “selling to take profits,” the narrative suggests a proactive risk‑management approach that prioritizes portfolio stability over short‑term upside.

The Market’s Reaction

Shortly after the announcement, Nvidia’s stock opened up 2.3 % on Friday the following week, reflecting a temporary market correction that many analysts attribute to the “safety‑first” reaction to Thiel’s exit. However, the broader NASDAQ Composite dipped 0.5 % in the same session, indicating that investors were more concerned about the fund’s overall exposure to high‑beta technology names rather than Nvidia alone.

Analyst commentary was mixed. S&P Global Market Intelligence noted that Thiel’s fund is a “high‑profile, influential investor” in the tech space, and its exit could signal a cautionary stance toward the AI‑chip sector. Meanwhile, Morgan Stanley’s research group argued that the sale is “proportionate” relative to the fund’s size and unlikely to materially affect Nvidia’s price trajectory, citing the company’s strong earnings pipeline and dominant market position.

Contextualizing the Sale Within Thiel’s Portfolio

A quick scan of the Thiel Fund’s 13F filing shows that, prior to the Nvidia liquidation, the portfolio was heavily tilted toward software and data‑centric holdings:

The fund’s overall valuation hovered around $6.3 B before the sale. The exit from Nvidia allowed the fund to reallocate $159 M to other assets, particularly in sectors where Thiel has expressed strategic interest, such as quantum computing and bio‑tech.

Looking Ahead

The sale’s long‑term implications for Thiel’s investment philosophy remain to be seen. If the fund indeed intends to pivot toward emerging technology clusters, it could reshape the way high‑growth, high‑risk investors assess the AI chip market. For Nvidia, the exit adds to a growing list of institutional adjustments that signal a broader rebalancing across the tech landscape.

Investors watching the stock should continue to monitor:

• Nvidia’s earnings guidance for the next fiscal quarter
• Macro‑economic signals, particularly interest rate trajectories and inflation data
• Portfolio moves by other significant stakeholders, such as Berkshire Hathaway and BlackRock, which have maintained long positions in NVDA.

In an era where technology giants are both catalysts and casualties of market sentiment, the Thiel Fund’s decisive exit underscores the volatile interplay between innovation hype and financial prudence.