Peter Thiel, a co-founder of PayPal and Palantir Technologies and an early investor in Facebook, maintains a portfolio of AI stocks that may be unexpected.
Despite his extensive background in technology, his hedge fund's AI holdings consist of three companies, none of which are Nvidia or Palantir.
Tesla
Thiel's hedge fund reduced its Tesla position by 76% in the third quarter of 2025; however, the electric vehicle manufacturer remains the largest holding in his portfolio. In a 2015 interview, Thiel indicated that self-driving cars represented a significant innovation. Tesla has been a pioneer in self-driving car technology, accumulating extensive autonomous driving data.
The reduction in shares might relate to Thiel's reported skepticism regarding Tesla CEO Elon Musk's emphasis on humanoid robots.
Microsoft
In Q3, Thiel's hedge fund purchased 49,000 shares of Microsoft, elevating it to the second-largest holding, representing approximately 34% of the total portfolio. This investment aligns with Thiel's perspective on technological revolutions.
Thiel suggests value shifts from "shovel sellers" (such as GPU manufacturers) to "builders" (such as cloud service and software providers integrating AI).
Thiel divested all of his hedge fund's stake in Nvidia during Q3 while simultaneously investing in Microsoft. Microsoft's allocation of data center infrastructure for internal needs rather than solely external customer demand is seen as a "building" strategy, which Thiel would likely endorse.
Apple
Thiel's hedge fund initiated a new position in Apple in Q3, acquiring over 79,000 shares. This investment in Apple, a company that has been widely viewed as having lagged in generative AI, likely stems from two primary considerations:
- Apple possesses a large AI distribution network with 2.5 billion iPhones globally, and its sales could potentially be boosted by integrating Google Gemini with Siri and the planned release of AI-powered smart glasses.
- Thiel has previously supported vertical integration in technological progress, aligning with Apple's strategy of designing its own AI chips, which enables unique vertical integration.