Unlike today, Nvidia has to amaze. In light of the next quarterly report, which the Californian giant will publish on Wednesday with markets closed, the mood around artificial intelligence-related companies and securities is heavy. Bubble fears seem like a fever that’s ready to escalate. And some moves in recent days appear to be heading in this direction.
The visionary
In fact, in the last few hours, it was revealed that Peter Thiel’s hedge fund, Thiel Macro, sold its entire stake in Nvidia during the third quarter, raising new concerns about a bubble forming in the artificial intelligence sector. Thiel is considered one of Silicon Valley’s visionaries. He co-founded (with Elon Musk) Pay Pal. He later became one of Facebook’s first investors. And he founded Palantir. In short, curriculum is closely related to winning choices in the world of innovation.
And now that his hedge fund has decided to sell its stake in Nvidia, it certainly hasn’t gone unnoticed.
According to filings filed in recent weeks, the fund sold about 537,742 shares of the Santa Clara-based chipmaker. Calculated at the closing price on September 30, the shares would be worth about $100 million.
Alarm bell
Thiel’s decision certainly serves as a warning to investors riding the AI wave. Moreover, this happened a few days after a similar step taken by SoftBank, which last week also sold part of its ownership in Nvidia. A combination that is fueling anxiety on Wall Street: the rush to record valuations in tech stocks may have reached a fever pitch, with the risk of putting pressure on the trillions of dollars that have been poured so far into AI development.
