Shares of Nvidia fell sharply in November despite strong earnings, as major investors reassess their holdings in the artificial intelligence chip leader [[3]]. The pullback follows a period of unprecedented growth for the company, which has become central to the burgeoning AI sector and now supplies 90% of all AI chips. The moves by investors like Thiel Macro and SoftBank signal increasing scrutiny of valuations and the complex investment landscape surrounding artificial intelligence advancement [[3]].
Nvidia shares fell nearly 8% in November, following reports that prominent investors are reassessing their positions in the artificial intelligence chipmaker. The pullback comes after a remarkable three-year run that saw Nvidia’s stock surge by 1,200% as the company became central to the global AI boom.
Thiel Macro LLC, the fund founded by Peter Thiel, completely exited its Nvidia holdings in the third quarter. Simultaneously, SoftBank CEO Masayoshi Son reportedly shifted profits from Nvidia into OpenAI, the company behind the popular ChatGPT platform. The moves signal a potential shift in sentiment surrounding the high-flying tech stock, even as Nvidia continues to dominate the AI chip market.
Concerns Mount Over AI Investment Landscape
The investor exits come amid growing concerns that the fervor surrounding artificial intelligence may be creating a market bubble. Experts point to a complex web of reciprocal investments between major tech companies and AI startups, where companies are funding startups that then purchase computing power and infrastructure from the same companies. “Investors and stakeholders increasingly need a clear organizational chart to navigate the complex web of cross-investments and connections between major U.S. tech companies,” Wallstreet-online.de noted Wednesday.
Thiel’s fund sold 537,742 Nvidia shares in the third quarter, according to filings with the U.S. Securities and Exchange Commission (SEC) reported by Reuters. The timing of Thiel’s exit is unclear, but he has previously expressed concerns about excessive capital flowing into AI companies. This decision highlights the growing scrutiny of valuations in the AI sector.
Nvidia Delivers Strong Quarterly Results
Despite the investor activity, Nvidia reported robust third-quarter earnings Wednesday after market close, potentially easing some concerns. Revenue surged 62% to $57 billion, exceeding analyst expectations. Net income climbed 65% to $31.9 billion.
The results surpassed estimates of around $61.5 billion in revenue. Notably, Nvidia achieved this growth despite the absence of the Chinese market, where business has been disrupted by U.S. export restrictions and subsequent countermeasures from the Chinese government.
“The sell-through rate for Blackwell chips is phenomenal,” said CEO Jensen Huang. He added that processors for data centers are sold out, and “demand for computing is growing exponentially.” Nvidia projected revenue of $65 billion, plus or minus 2%, for the fourth quarter of 2025.
Key Indicator for AI Expansion
“As a cornerstone of artificial intelligence investment, these numbers will determine whether the expansion continues or whether we enter a consolidation phase,” said Chris Murphy, chief investment strategist at Susquehanna, ahead of the earnings release. The report underscores investors’ focus on the sustainability of AI-driven growth.
“The signal they send – regarding demand, margins, supply chain, and willingness to invest – could influence sentiment across the semiconductor, cloud provider, and overall AI infrastructure spaces,” added Brian Stutland, chief investment officer at Nvidia investor Equity Armor Investments.
