When one of Silicon Valley’s smartest investors makes a big move, everyone pays attention. Peter Thiel just did exactly that by selling his entire Nvidia stake and putting the money into Microsoft and Apple instead. This wasn’t pocket change either—he sold all 537,742 Nvidia shares worth about $100 million.
Thiel’s timing raises eyebrows since Nvidia is absolutely crushing it right now. The company just reported $57 billion in revenue for the third quarter, up a whopping 62% from last year. They’re the undisputed king of AI chips, powering everything from ChatGPT to self-driving cars.
So why would anyone dump such a winner?
The answer likely comes down to valuations and bubble fears. Nvidia’s stock price has skyrocketed so much that some investors worry it’s gotten too expensive, even for a company doing this well. Think of it like buying a fantastic house in a hot market—sometimes even great properties cost more than they’re worth.
Instead of chasing the AI rocket ship, Thiel decided to park his money in two tech giants known for steady performance. He bought 49,000 Microsoft shares and 79,181 Apple shares, making them huge chunks of his portfolio at 34% and 27% respectively.
Microsoft appeals to investors because it prints money like a mint. The company generated $25.7 billion in free cash flow last quarter alone, up 33% from the previous year.
Plus, they’re not sitting out the AI revolution—they’re just approaching it differently through partnerships and products like Copilot. Microsoft’s Azure cloud segment saw impressive growth of 40%, demonstrating the company’s strong position in enterprise services.
Apple offers similar stability with record-breaking revenue of $102.5 billion in the fourth quarter. iPhone sales are expected to grow in double digits this year, and their services business keeps expanding. Both companies have established track records as dividend aristocrats, demonstrating the kind of financial stability that attracts conservative investors.
Thiel’s strategy shift reflects a move from high-risk, high-reward investments to companies with predictable cash flows and lower volatility. This sector rotation toward diversified tech holdings demonstrates a broader reevaluation happening across the technology investment landscape.
While other investors continue piling into Nvidia, Thiel is playing defense in an uncertain market. Whether this proves brilliant or overly cautious remains to be seen, but it definitely signals that even AI’s biggest believers sometimes choose stability over spectacular growth.
