Key Takeaways
- Peter Thiel, a well-known entrepreneur and investor, has sold his stake in Nvidia and invested in Apple and Microsoft.
- Thiel’s decision may be driven by his contrarian approach to investing, as Nvidia has become a widely owned stock and its risk profile is changing.
- Apple and Microsoft may be better positioned for long-term growth in the AI industry, with Apple’s ecosystem and Microsoft’s AI-centric operating system providing a competitive advantage.
- Thiel’s investment strategy is focused on maximizing risk-adjusted returns, and he may be looking to capitalize on the growth potential of Apple and Microsoft in the AI industry.
Introduction to Peter Thiel’s Investment Strategy
Peter Thiel, a co-founder of PayPal and a pioneer in the world of defense tech, has a reputation for making bold and contrarian investment decisions. His hedge fund, Thiel Macro, recently sold its stake in Nvidia and invested in Apple and Microsoft. As Thiel notes, "the people who own the land where the gold was dug can continue to make money as property values compound over time." This quote highlights Thiel’s long-term approach to investing, and his decision to sell Nvidia and invest in Apple and Microsoft may be a strategic move to capitalize on the growth potential of these companies in the AI industry.
Why Peter Thiel May Have Sold Nvidia Stock
Nvidia’s stock has risen by about 1,000% since the beginning of the AI revolution, making it one of the most valuable companies in the world. However, Thiel’s decision to sell his stake in Nvidia may be driven by his contrarian approach to investing. As Nvidia has become a widely owned stock, its risk profile is changing, and Thiel may be looking to capitalize on other opportunities. As the article notes, "Nvidia’s best days are not necessarily behind it, but its risk profile is changing." This change in risk profile may have prompted Thiel to rotate his capital away from Nvidia and into other companies with more growth potential.
Why Apple and Microsoft Look Like Great Buys Right Now
Apple and Microsoft were once viewed as dinosaurs in the technology realm, but they may be better positioned for long-term growth in the AI industry. Apple’s ecosystem, which spans over 2 billion devices, provides a competitive advantage in the AI industry. As the article notes, "Apple doesn’t even need to invest in AI in order to become a winner from this megatrend." Microsoft, on the other hand, is building an AI-centric operating system and has a strong presence in cloud infrastructure, programming, and enterprise workflows. As the article notes, "Microsoft’s lock-in at the enterprise level makes it extremely difficult for its users to switch to rival platforms."
The Long-Term Potential of Apple and Microsoft
Thiel’s investment strategy is focused on maximizing risk-adjusted returns, and he may be looking to capitalize on the growth potential of Apple and Microsoft in the AI industry. As the article notes, "by the 2030s, companies like Apple and Microsoft should evolve into AI empires — essentially taxing every operation that leverages their platforms." This long-term approach to investing may be driven by Thiel’s belief that Apple and Microsoft have a competitive advantage in the AI industry and will continue to grow and evolve over time. As Thiel notes, "the gold rushes are fleeting, but the people who own the land where the gold was dug can continue to make money as property values compound over time."
Conclusion
In conclusion, Peter Thiel’s decision to sell his stake in Nvidia and invest in Apple and Microsoft may be a strategic move to capitalize on the growth potential of these companies in the AI industry. Thiel’s contrarian approach to investing and his focus on maximizing risk-adjusted returns may have driven his decision to rotate his capital away from Nvidia and into Apple and Microsoft. As the article notes, "Thiel’s decisions imply he is simply looking to maximize his risk-adjusted returns, and in the world of AI investing, Nvidia is simply too obvious a pick." This approach to investing may be driven by Thiel’s long-term perspective and his belief that Apple and Microsoft have a competitive advantage in the AI industry.
https://www.fool.com/investing/2026/01/17/palantir-billionaire-peter-thiel-sells-nvidia-and/