Major Investors Dump NVIDIA Shares Amid AI Boom

Deep News11-18

Top global investors are offloading NVIDIA shares, with billionaire Peter Thiel's hedge fund liquidating its entire 537,000-share position in Q3, while Bridgewater Associates slashed its stake by 65%—moves coinciding with NVIDIA's market cap surpassing $5 trillion. The stock dipped 1.88% to $186.60 overnight.

Thiel Macro LLC’s 13F filing confirmed the sell-off, following SoftBank’s recent disclosure of a full exit. This institutional exodus signals risk management taking precedence despite the AI frenzy. The retreat aligns with late-cycle debt risks, as Bridgewater’s Ray Dalio warns of sovereign debt crises eclipsing traditional market speculation.

NVIDIA reports earnings post-market Wednesday. Analysts remain bullish, forecasting adjusted EPS of $1.23 and revenue of $54.83 billion for the October quarter (FactSet). D.A. Davidson’s Gil Luria cites unabated demand from cloud providers, while JPMorgan’s Harlan Sur anticipates another beat-and-raise quarter tied to supply chain scalability.

**Hedge Funds Retreat En Masse** Thiel Macro’s full exit and Bridgewater’s 65.3% cut (to 2.51M shares) mark a stark reversal from Q2’s 150% position increase. SoftBank’s divestment further underscores a stealthy risk-off pivot beneath the AI euphoria.

**Macro Risks Drive Portfolio Shifts** Bridgewater’s moves mirror Dalio’s debt-cycle warnings, with parallel shifts into U.S. index ETFs and emerging-market exits. Tightening policies and geopolitical tensions are forcing reevaluations of tech valuations.

**Earnings Optimism Persists** Luria maintains a $250 price target, citing underestimated compute demand, while Sur’s $215 target hinges on NVIDIA’s supply-chain execution for upside potential.

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