Palantir's Co-Founder Just Dumped His Entire Nvidia Stake. Should Investors Follow Suit?

Core Insights - Peter Thiel, co-founder of Palantir, sold all his Nvidia shares in Q3 2025, raising concerns among Nvidia investors about the implications of this move [1][3][6] Company Overview - Nvidia has shown strong performance, reporting $57 billion in revenue for Q3, exceeding expectations of $54 billion, resulting in a 62% year-over-year growth rate, which is an acceleration from Q2's 56% [7][8] - The company is currently the largest by market capitalization, valued at approximately $4,380 billion [10] Market Position - Nvidia's gross margin stands at 70.05%, and it has a dividend yield of 0.02%, indicating a solid financial position [5] - Despite concerns about overvaluation, Nvidia's price-to-earnings ratio is competitive when compared to Microsoft and Apple, suggesting that its valuation aligns with other major tech companies considering future growth [9][12] Supply and Demand Dynamics - CEO Jensen Huang indicated that cloud GPUs are sold out, highlighting that supply is lagging behind demand, which positions Nvidia favorably for continued growth [8] - AI hyperscalers have announced increased capital expenditure expectations for 2026, further supporting Nvidia's growth trajectory [8] Investment Implications - Thiel's sale of Nvidia shares could indicate a shift in investment strategy, possibly towards new opportunities in AI or quantum computing, or a cautious outlook on the future of AI [6] - The strong performance and growth prospects of Nvidia suggest it remains a compelling investment opportunity despite Thiel's actions [12]