A new regulatory filing has shown that billionaire venture capitalist Peter Thiel’s investment fund, Valar Ventures, scaled back its exposure to Nvidia during the third quarter of 2025. The disclosure came through the fund’s quarterly SEC 13F filing, offering a rare glimpse into Thiel’s public-market investment decisions.

AI Chip Boom Drives Nvidia to Record Highs

Nvidia has been the centerpiece of the global AI hardware surge, with its advanced GPUs powering everything from large language models to high-performance computing clusters. As the AI wave accelerated, Nvidia’s stock reached multiple all-time highs throughout the year, becoming one of the world’s most valuable companies.

Valar Ventures had previously gained significantly from Nvidia’s meteoric ascent, making the stake reduction appear to be a calculated move to secure profits amid strong valuations.

Valar Ventures Takes a Profit-Booking Approach

Strategic Exit or Market Caution?

Market analysts suggest Thiel’s move is consistent with broader investor sentiment, where funds have begun cautiously rebalancing portfolios after rapid AI-sector appreciation. The filing shows that Valar Ventures trimmed its holdings substantially, although exact share counts and valuations were not publicly detailed.

Financial experts believe the decision may reflect:

• Profit-taking at peak valuations

• Concerns about near-term volatility in the semiconductor supply chain

• Greater diversification into emerging tech or early-stage ventures

Nvidia Still Dominates the AI Market

Despite the selloff by Thiel’s fund, Nvidia continues to hold a commanding lead in the global AI chip landscape. Its H-series and B-series accelerators remain the gold standard for AI model training and inference. Analysts stress that occasional stake trimming by funds does not indicate weakness in the company’s long-term outlook.

Thiel’s Investment Strategy in Focus

Peter Thiel, known for backing transformative tech companies like Facebook, Palantir, and SpaceX, often rebalances his public equity positions based on macro trends rather than short-term oscillations. The Nvidia reduction is viewed as part of a larger strategic shift as many venture funds reassess exposure to the overheated AI sector.

What Comes Next?

Market watchers will closely track Valar Ventures’ fourth-quarter filings to determine whether this Nvidia sale was a one-time adjustment or the beginning of a broader repositioning. Meanwhile, Nvidia’s performance continues to be buoyed by record AI infrastructure spending from global enterprises.