In a move that’s sending ripples through the tech investment landscape, Peter Thiel’s hedge fund Thiel Macro LLC has completely sold off its Nvidia stocks during the third quarter. The sale, which involved 537,742 shares worth approximately $100 million, signals a potentially significant shift in Silicon Valley’s investment strategies.

Thiel’s exit comes at a critical moment when Nvidia has become the world’s most valuable company, riding the massive wave of artificial intelligence enthusiasm. This strategic move coincides with growing concerns about a potential AI investment bubble, a sentiment echoed by other high-profile investors like hedge fund manager Michael Burry.

The tech world is witnessing a complex narrative around AI investments. While companies continue to raise and spend funds at unprecedented rates, there’s increasing skepticism about their ability to create sustainable monetization models. Burry has been particularly vocal, even disclosing bearish positions against Nvidia and other tech companies.

Interestingly, Thiel isn’t completely abandoning the AI ecosystem. He’s maintained investments in AI-related startups like Substrate, Mercor, and Cognition AI, suggesting a nuanced approach to technological innovation. His portfolio now primarily consists of stocks in Apple, Microsoft, and a reduced stake in Tesla.

This development follows similar moves by other major investors, including Japan’s SoftBank Group, which sold its Nvidia shares for $5.83 billion in October. The tech investment community appears divided, with an almost equal number of hedge funds increasing and decreasing their Nvidia positions.

While Nvidia’s stocks have only marginally increased since September, the broader implications of Thiel’s move are significant. It reflects a growing skepticism about the current AI investment landscape and potentially signals a more cautious approach to tech valuations.

As the tech world continues to evolve rapidly, Thiel’s strategic pivot serves as a reminder that even in the most bullish markets, seasoned investors remain adaptable and critically analytical.