Why Billionaire Peter Thiel Just Sold All His Nvidia Stock for Apple and Microsoft

TLDR

• Peter Thiel’s investment fund dumped all 538,000 Nvidia shares and sold 208,000 Tesla shares in Q3 2025, totaling $166 million in sales.
• The billionaire PayPal co-founder bought 79,000 Apple shares and 49,000 Microsoft shares for $43 million combined.
• Thiel’s portfolio shift leaves him with over $120 million in cash, suggesting either caution about market valuations or plans for new investments.
• The move represents a defensive strategy, swapping high-growth volatile stocks for stable tech giants with mature business models.
• Despite stronger growth, Nvidia trades at similar valuations to Apple based on forward earnings multiples.

Billionaire tech investor Peter Thiel made sweeping changes to his stock portfolio in the third quarter of 2025. His investment fund sold major positions in two high-flying tech stocks while buying into more stable alternatives.

The PayPal co-founder and early Facebook investor completely eliminated his Nvidia holdings during Q3. His fund sold all 538,000 shares of the AI chip maker.

NVIDIA Corporation, NVDA

Thiel also cut his Tesla position by selling approximately 208,000 shares. The combined sales generated around $166 million based on average Q3 stock prices.

Nvidia shares averaged $174 during the quarter, making Thiel’s exit worth roughly $94 million. Tesla stock averaged $347 during the same period, meaning the partial sale brought in about $72 million.

Apple and Microsoft Replace Nvidia Holdings

The veteran investor redirected some proceeds into two different tech giants. Thiel’s fund purchased 79,000 Apple shares during the third quarter.

Apple Inc., AAPL

The fund also established a position in Microsoft by buying 49,000 shares. These two new investments cost approximately $43 million total.

The math reveals an important detail about Thiel’s strategy. He raised $166 million from stock sales but spent only $43 million on new purchases.

This leaves more than $120 million sitting in cash. The substantial cash position could signal several possibilities for Thiel’s future moves.

He might be preparing to invest in private companies or startups. The cash could also indicate concerns about overall stock market valuations.

From Growth to Stability

The portfolio adjustment represents a clear shift in investment philosophy. Thiel moved away from high-growth, volatile stocks toward established tech leaders.

Apple and Microsoft offer mature business models with predictable revenue streams. Both companies generate consistent cash flow and have lower stock price volatility.

Tesla and Nvidia, by comparison, experience wider price swings and faster growth rates. The switch suggests Thiel is taking a more conservative investment stance.

One aspect of the trade stands out as particularly interesting. Nvidia continues posting explosive revenue growth fueled by artificial intelligence demand.

Apple’s revenue growth has stayed below 10% annually for multiple years. Yet both companies trade at nearly identical forward price-to-earnings ratios.

This valuation similarity exists despite vastly different growth profiles. Nvidia’s forward P/E ratio matches Apple’s even with much faster revenue expansion.

What the Moves Mean

Thiel owned zero Apple and Microsoft shares at the end of Q2 2025. The Q3 purchases represent entirely new positions for his fund.

The timing of these trades occurred while both Tesla and Nvidia were posting strong performance. Tesla stock ranged from $294 to $445 during Q3.

Nvidia shares traded between $153 and $187 in the same timeframe. Thiel sold during a period of strength for both companies.

The billionaire investor has built his reputation on early bets in major tech companies. His track record includes successful investments in PayPal, Palantir, and Facebook.

Thiel’s latest moves show even legendary investors adjust their strategies. The shift from aggressive growth plays to defensive positions reflects changing market conditions and personal investment decisions.

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