Palantir Billionaire Peter Thiel Sells Nvidia and Tesla, and Buys an AI Stock Up 483,000% Since Its IPO

• Nvidia has more than 80% market share in artificial intelligence (AI) accelerators.

• Tesla has a massive long-term opportunity in autonomous driving technology.

• Microsoft is monetizing artificial intelligence through software and cloud services.

• 10 stocks we like better than Nvidia ›

Billionaire Peter Thiel is best known for his role in co-founding Palantir Technologies. But he also runs the hedge fund Thiel Macro, which made three interesting trades in the third quarter:

• Thiel Macro sold 100% of its stake in Nvidia (NASDAQ: NVDA).

• It sold 76% of its stake in Tesla (NASDAQ: TSLA).

• Finally, it started a position in Microsoft (NASDAQ: MSFT).

The new position in Microsoft is particularly interesting. It accounts for 34% of the hedge fund’s invested assets despite returning about 483,000% since its IPO in March 1986. In other words, Microsoft has already been an extraordinary winner, but Thiel is evidently confident it will continue winning from here.

Here’s what investors should know about Nvidia, Tesla, and Microsoft.

Nvidia is well known for its best-in-class graphics processing units (GPUs), chips used to speed up compute-intensive data center workloads like artificial intelligence (AI) training and inference. However, the company is truly formidable due to its full-stack strategy that spans adjacent hardware (like CPUs and networking) and software development tools.

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