During the third quarter, Peter Thiel’s hedge fund sold out of Nvidia and initiated a position in Apple. Apple’s growth has been sluggish during the AI revolution, compared to Nvidia. Thiel completely exited Nvidia, selling 537,742 shares, opting for Apple instead. Nvidia’s market capitalization skyrocketed from $345 billion to $4.6 trillion post-ChatGPT launch. Despite Nvidia’s record-breaking revenue and earnings, investors may be growing cautious, leading to a potential slowdown in momentum. Thiel’s move to Apple could indicate a shift to safer investments amid market volatility. Apple’s vast active device base positions it well for AI integration and services revenue growth. Apple’s steady cash flow and predictable returns contrast Nvidia’s higher growth trajectory. Thiel’s switch to Apple may suggest a correction in momentum stocks, favoring stability for investors. Nvidia’s lower forward P/E ratio compared to Apple doesn’t guarantee it’s a better buy for growth investors at this time. Thiel’s portfolio adjustment hints at a market correction, favoring reliable opportunities like Apple. Thiel’s switch from Nvidia to Apple may signal a preference for stability amid market uncertainty. Despite Apple’s lack of AI innovation, its robust cash flow makes it a safer investment than volatile stocks like Nvidia. Thiel’s move from Nvidia to Apple reflects a shift towards stability in uncertain market conditions. Thiel’s pivot to Apple from Nvidia could indicate a strategy to weather market turbulence with a safer investment choice.

Read more at Yahoo Finance: Palantir Billionaire Peter Thiel Dumped Nvidia and Bought This Other Magnificent Stock Instead — Even as Warren Buffett Was Selling It Before Retiring