Peter Thiel’s fund divested Nvidia’s stake in the September quarter and filed shows

Technology billionaire Peter Thiel’s hedge fund sold its entire stake in Nvidia in the third quarter, a regulatory filing showed, adding to concerns about an artificial intelligence bubble.The fund, Thiel Macro, sold about 537,742 shares in the AI ​​chip leader this quarter, the filing showed on Friday. The stake would have been worth about $100 million, as of the company’s closing price on September 30.

Thiel’s sell-off, coupled with SoftBank’s sale of its own Nvidia stakes last week, has fueled Wall Street fears that the frenzy that fueled rising technology valuations may have peaked, putting at risk the trillions of dollars spent on AI advancement.

Investors and analysts will look to Nvidia’s third-quarter results on Wednesday to allay concerns about a bubble, as the world’s most valuable company is seen as a bellwether for AI demand as the coveted chips are used in massive data centers and servers.

Thiel Foundation did not immediately respond to a Reuters request for comment.

In the third quarter, several hedge funds cut their holdings in some of the top seven tech companies, known as the “Magnificent Seven,” in a shift from their activity in the second quarter, when leading stock-picking firms were more bullish on Big Tech names. Thiel’s fund now considers Apple, Microsoft and a reduced stake in Tesla as its top holdings, according to the filing with the Securities and Exchange Commission.

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