Billionaire Peter Thiel shocked Wall Street by fully exiting his Nvidia stake in Q3, slashing his fund’s equity book by two-thirds. This move aligns with his past warnings about AI’s inflated hype cycle ahead of real economics. Thiel’s portfolio now revolves around three megacap names like Tesla, Microsoft, and Apple.

Thiel’s Q3 filing revealed a drastic pivot in the tech space, with Nvidia being completely eliminated from his fund. Despite Nvidia’s impressive growth and $5 trillion valuation, Thiel Macro LLC drastically reduced its equity book. Thiel’s fund now holds just three holdings: Tesla, Microsoft, and Apple, reflecting a significant shift away from Nvidia.

Thiel’s move to exit Nvidia and invest in Microsoft and Apple signals a cautionary stance on AI’s current hype cycle. Other industry figures like Jeff Bezos, David Solomon, and Michael Burry have expressed similar concerns about inflated stock valuations in the AI sector. Thiel believes in the transformative power of AI but sees more lasting economics in diversified tech giants.

Read more at Yahoo Finance.: Peter Thiel dumps top AI stock, stirring bubble fears