By tom.howarth@ourmedia.co.uk
Publication Date: 2025-12-27 14:00:00
A chill seems to be spreading across Wall Street. Tech billionaire Peter Thiel’s hedge fund recently sold its entire $100m (£76m) stake in Nvidia, the world’s most valuable chip company at the heart of the artificial intelligence (AI) boom.
Meanwhile, Michael Burry – famous for raising the alarm about the 2008 financial crisis and Christian Bale portrayed him in the film The big short film – Bet almost $200 million (£152 million) against the chip manufacturer.
Why would two investors of their caliber turn against a company whose stock price has risen nearly 15-fold in five years?
Partially because this isn’t just an Nvidia problem. The company makes the processors that power much of the AI industry — an industry that is already worth trillions of dollars and almost single-handedly drives U.S. economic growth.
But something in this growth story could be on the rocks. Many researchers and investors now suspect that the amazing dynamics of AI are based on a technical assumption that may not be true…
