Billionaire Peter Thiel Exits Nvidia and Tesla, Loads Up on Apple and Microsoft Stock

TLDR

• Peter Thiel sold his entire Nvidia and most of his Tesla holdings in Q3 2025, redirecting funds to Apple and Microsoft
• Microsoft trades near $470 with analysts setting price targets between $650-$675, citing AI and cloud growth
• Apple reached record fiscal 2025 revenue of $416 billion and trades around $260, with services becoming a larger revenue share
• Microsoft reported Q1 2026 revenue of $77.7 billion, up 18% year-over-year, with earnings scheduled for January 28
• Apple led global smartphone shipments in 2025 with 20% market share, surpassing Samsung for the first time

Billionaire investor Peter Thiel made waves in Q3 2025 by dumping his entire Nvidia position and most of his Tesla holdings. The PayPal co-founder and Palantir founder redirected those funds into Apple and Microsoft shares.

Thiel’s hedge fund portfolio showed just three holdings at the end of September. His Form 13F filing revealed he had completely exited Nvidia, one of the AI chip market’s biggest players. He also cut his Tesla position substantially.

The move came at an interesting time for Nvidia. The company’s stock remained flat in Q4 2025 after Thiel sold. Tesla gained only 1% during the same period.

Apple and Microsoft showed mixed results following Thiel’s purchases. Apple stock climbed 7% in Q4 2025. Microsoft dropped 7% during the quarter.

Microsoft’s AI Growth Story

Microsoft currently trades around $470 per share. The stock sits well below its 52-week high of $555 but remains above its low of $345.

Microsoft Corporation, MSFT

Wall Street analysts remain bullish on Microsoft’s prospects. Morgan Stanley set a $650 price target with an Overweight rating. Goldman Sachs initiated coverage with a Buy rating and $655 target.

Jefferies went even higher with a $675 price target. These firms point to Microsoft’s AI positioning and enterprise software spending as key drivers.

The company reported Q1 2026 revenue of $77.7 billion. That marked an 18% increase from the prior year. Microsoft also beat earnings expectations with $4.13 per share.

Management guided for Q2 revenue between $79.5 billion and $80.6 billion. That represents growth of 14% to 16%. Some analysts view this guidance as conservative.

Microsoft returned $10.7 billion to shareholders through dividends and buybacks in Q1. The company continues heavy AI infrastructure investment while maintaining capital returns.

Apple’s Record Performance

Apple trades near $260 per share with a market cap around $3.9 trillion. The stock moved between $258 and $261 in recent trading with elevated volume.

Apple Inc., AAPL

The company posted record fiscal 2025 results. Total revenue reached $416 billion with net income of $112 billion. Both figures set new company records.

Fiscal Q4 2025 revenue hit $102.5 billion, up 8% year-over-year. Services revenue reached an all-time high of $28.8 billion. The services segment now represents a larger portion of Apple’s business with higher profit margins.

Apple declared a $0.26 per share dividend payable in November 2025. The company continues its capital return program alongside product development.

New hardware releases include the iPhone 17 line, AirPods Pro 3, and updated Apple Watch models. These products launched in late 2025 and are expected to support upcoming quarters.

Leadership Changes and Market Position

Apple is reorganizing its AI leadership structure. John Giannandrea will retire in spring 2026. Amar Subramanya will take over as VP of AI, leading foundation models and AI safety work.

The company led global smartphone shipments in 2025 with 20% market share. This marked the first time Apple surpassed Samsung in annual global shipments.

Apple trades at a price-to-earnings ratio in the mid-30s. The premium valuation reflects investor expectations for services growth and AI development.

Demand for iPhone 17 remains strong in key markets. India and other emerging markets show improving performance for Apple products.

Microsoft’s next earnings call is scheduled for January 28, 2026. Investors will watch for updates on Copilot adoption, Azure AI metrics, and enterprise cloud growth trends.

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