Investors Rush to Sell Nvidia Amid AI Bubble Concerns
Japan’s SoftBank Also Sells Entire Stake
Billionaire investor Peter Thiel, founder of PayPal and Palantir, has sold all of his Nvidia shares amid growing concerns about a potential investment bubble in artificial intelligence (AI).
According to a report submitted to the U.S. Securities and Exchange Commission (SEC) by the Thiel Macro Fund, which Thiel operates, on November 17 (local time), the firm sold all 537,742 shares of Nvidia it held between July and September. Based on Nvidia's average share price during this period, the sale is estimated to have totaled around 100 million dollars (approximately 146 billion won).
In addition to Nvidia, Thiel also significantly reduced his stake in Tesla from 272,613 shares to 65,000 shares. On the other hand, he newly purchased 79,181 shares of Apple and 49,000 shares of Microsoft.
His complete sale of Nvidia shares is drawing particular attention, as it comes at a time when concerns about overheating in AI investments and the overvaluation of technology stocks continue, and other major investors are also selling related stocks. Among investors, skepticism is growing over whether the massive capital expenditures required for AI development can lead to sustained high profitability over the long term. With Nvidia becoming the world's first company to reach a market capitalization of 5 trillion dollars last month, some on Wall Street are voicing concerns that AI investment may have peaked.
Previously, Japan's SoftBank, led by Chairman Masayoshi Son, also sold its entire stake in Nvidia last month for 5.83 billion dollars (approximately 8.516 trillion won). Michael Burry, the real-life figure behind the film "The Big Short" who predicted the 2008 global financial crisis, has also disclosed short positions against Nvidia and Palantir.
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