Billionaire investor Peter Thiel's hedge fund, Thiel Macro, sold its entire stake in Nvidia during the third quarter, a recent regulatory filing shows. The capital was redeployed into positions in Apple and Microsoft, two other members of the so-called "Magnificent Seven" group of stocks.
Peter Thiel, a co-founder of PayPal, is known for his early investments in companies like Meta Platforms and Palantir Technologies, where he serves as chairman. His fund's latest moves were disclosed in a 13F filing.
Nvidia's stock has risen approximately 1,000% since the beginning of the artificial intelligence revolution, making it the world's most valuable company. The stock has been widely held by both retail and institutional investors.
Thiel has a reputation as a contrarian investor. At Nvidia's current market capitalization of $4.5 trillion, some observers note the company's profile is shifting, with increased exposure to factors like geopolitics, tariffs, and capital expenditure trends.
Regarding Apple, the company's ecosystem spans over 2 billion devices. Analysts suggest Apple can benefit from AI trends by charging fees to developers who distribute AI products through its platform, without needing to develop its own rival AI models.
Microsoft is building an AI-centric operating system and holds strong positions in cloud infrastructure via Azure, programming with GitHub, and enterprise workflows with Office and Teams. Its enterprise-level integration makes it difficult for users to switch to competing platforms.
One metaphor compares Nvidia to a pick and shovel supplier during a gold rush, vital in the initial phase. In contrast, Apple and Microsoft are likened to landowners who can collect ongoing value from the activity on their platforms.
The Motley Fool Stock Advisor analyst team recently identified ten stocks they believe are better buys than Nvidia, though Nvidia itself was once recommended by the service in 2005. The service's total average return is reported as 958%.