The Only 3 AI Stocks Billionaire Peter Thiel's Hedge Fund Owns (Hint: Palantir or Nvidia Aren't on the List)

Who are the astir tech-savvy investors around? There are respective contenders. However, I fishy that galore radical would sanction Peter Thiel. He co-founded PayPal (NASDAQ: PYPL) and was the archetypal extracurricular capitalist successful Facebook (now Meta Platforms (NASDAQ: META)). Thiel besides co-founded Palantir Technologies (NASDAQ: PLTR).

You mightiness deliberation that Thiel, whose nett worthy is presently astir $24.6 billion, would person a portfolio loaded with artificial quality (AI) stocks specified arsenic Nvidia (NASDAQ: NVDA) and Palantir. However, the billionaire's hedge money owns lone 3 AI stocks -- and neither Nvidia nor Palantir are connected the list.

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Thiel slashed his hedge fund's Tesla (NASDAQ: TSLA) presumption by 76% successful the 3rd 4th of 2025. However, the electrical car banal remained the largest holding successful his portfolio.

What does Thiel similar astir Tesla? Comments helium made successful a 2015 interrogation mightiness beryllium instructive. Thiel stated connected Tyler Cohen's "Conversations with Tyler" podcast, "AI feels somewhat overhyped." He added, "But if you've got self-driving cars, that would beryllium a important innovation which would alteration a decent magnitude astatine the margins."

Tesla, of course, has been a pioneer successful self-driving car exertion for years. The institution has much real-world miles of autonomous driving information than anyone else, which could springiness it a important competitory vantage implicit the agelong run.

But wherefore did Thiel merchantability specified a large chunk of his Tesla banal successful Q3? It could beryllium due to the fact that helium disagrees with Tesla CEO Elon Musk's strategy of prioritizing the improvement of humanoid robots. Thiel told The New York Times past twelvemonth that helium had spoken with Musk astir Musk's imaginativeness of 1 cardinal humanoid robots wrong 10 years, and seemed to explicit immoderate skepticism.

Thiel bought 49,000 shares of Microsoft (NASDAQ: MSFT) successful Q3. The acquisition propelled the tech elephantine into the No. 2 spot successful his hedge fund's portfolio, accounting for astir 34% of its full holdings.

This important concern successful Microsoft aligns good with Thiel's presumption astir the progression of technological revolutions. He has argued that worth yet shifts from the "shovel sellers" to the "builders." In Thiel's paradigm, Nvidia is an fantabulous illustration of a "shovel seller" with its GPUs. However, Microsoft is simply a "builder" with its unreality services and bundle products that integrate AI, peculiarly generative AI. Thiel sold each of his hedge fund's involvement successful Nvidia successful Q3 but bought a involvement successful Microsoft.