Major Investors Sell NV Stock: SoftBank, Peter Thiel, and Coatue Trim Positions as AI Bubble Concerns Rise
Nvidia (NASDAQ: NVDA), the world’s most valuable semiconductor company and the backbone of the global AI boom, has seen several high-profile investors sell or reduce their positions in recent months. The sales, which collectively amount to billions of dollars, have fueled renewed debate over whether the AI sector is entering an overheated phase following two years of explosive growth.
While Nvidia remains a dominant force in graphics processors and AI accelerators, the moves by some of its most influential shareholders are prompting analysts and market observers to re-evaluate the sustainability of the AI rally.
SoftBank Sells Entire Nvidia Stake Worth $5.83 Billion
One of the most significant divestments came from SoftBank Group, which revealed in October 2025 that it had sold its entire 32.1 million-share position in Nvidia.
Value of sale: $5.83 billion
Reason: SoftBank stated that the funds would be redirected toward investments in AI ventures, including OpenAI and related infrastructure projects.
SoftBank was among Nvidia’s largest early-stage backers. Its full exit raised eyebrows given the company’s central role in powering the current AI boom.
Peter Thiel Also Exits Nvidia
Billionaire tech investor Peter Thiel joined the wave of sellers through his hedge fund, Thiel Macro LLC.
Shares sold: approximately 537,742
Value: around $100 million
Period: Q3 2025
Thiel’s complete exit from Nvidia was notable because he had previously been vocal about semiconductors being the “new oil” of the AI era. His departure added to the speculation that some investors believe Nvidia’s valuation may be ahead of fundamentals.
Michael Burry Places Bearish Bets on Nvidia and Palantir
Famed investor Michael Burry, best known for predicting the 2008 financial crisis, has taken short positions against Nvidia and Palantir, according to recent filings.
While the exact size of the positions remains undisclosed, Burry’s bearish move is especially notable given that Nvidia has been the poster child of the AI boom, soaring to record valuations. Palantir, meanwhile, has rallied on AI software demand and government contracts.
Burry’s trades typically indicate a contrarian stance built on the belief that valuations have stretched far beyond fundamentals. His involvement has amplified concerns that the AI sector may be entering speculative territory.
Coatue’s Philippe Laffont Cuts Position but Still Holds Large Stake
While not a full exit, hedge-fund billionaire Philippe Laffont, head of Coatue Management, reduced his Nvidia exposure in Q3 2025.
Shares sold: 1.6 million
Position status: Nvidia remains a top Coatue holding, despite the trim.
Analysts interpreted Coatue’s reduction as a move to lock in outsized gains after Nvidia’s record performance throughout 2024 and 2025.
Are Investors Signaling an AI Bubble?
While none of these moves guarantee an imminent correction, the alignment of several prominent investors, each with different investment philosophies, has raised the following market questions:
1. Has AI Valuation Outpaced Real Earnings Growth?
Nvidia’s valuation expanded rapidly as data centers, cloud providers, and enterprises raced to acquire GPUs. Some analysts argue growth expectations have become unrealistic.
2. Are AI Chip Cycles Peaking?
Competition from AMD, Intel, and emerging custom AI chip startups is intensifying. Peak GPU shortages have eased, suggesting demand normalization.
3. Are Insiders Rotating Into the Next Theme?
Investors like SoftBank may be shifting from hardware to AI-native software or infrastructure, signaling a rotation inside the AI mega-trend.
AI Bubble Concerns Growing
The combination of these sales has intensified discussions around a potential “AI bubble”, a scenario where AI-related stocks may be priced beyond realistic growth expectations.
Key reasons why investors are concerned:
Nvidia’s valuation has surged to unprecedented heights due to unprecedented demand for AI hardware.
Competition is rising from AMD, Intel, and a growing list of custom AI chip startups.
The pace of corporate and government spending on AI may slow amid macroeconomic uncertainty.
While Nvidia continues to post industry-leading financial results, skeptics argue that the current pace of growth is unsustainable long-term.
Nvidia’s Product Sales Remain Strong Despite Investor Exits
Importantly, these stock sales do not reflect a decline in consumer or enterprise demand for Nvidia’s products.
Nvidia remains the leader in GPUs and AI processors, and its graphics cards continue to be widely stocked at major retailers.
Popular Nvidia GPUs currently on the market include:
PNY NVIDIA GeForce RTX 5070 OC – available at Walmart and LTT Partners
PNY NVIDIA GeForce RTX 5080 OC – sold through B&H Photo
ASUS Dual GeForce RTX 5060 Ti OC Edition – stocked at Best Buy
Demand for AI-capable GPUs remains high across:
data centers
machine-learning labs
cloud providers
consumer gaming PCs
The strength of Nvidia’s chip business continues to support its massive market capitalization.
Market Outlook
Despite heavy selling by several major investors, Nvidia’s long-term position in AI hardware remains secure. Analysts note that:
Large funds frequently rebalance after significant gains
Nvidia’s dominance in GPU and AI chip markets remains unmatched
Global demand for AI infrastructure continues to rise
However, the timing and scale of the sales have added to growing uncertainty about the broader AI sector’s valuation.
