TLDR
- Billionaire Peter Thiel completely divested from Nvidia and most of Tesla in Q3 2025, shifting capital to Apple and Microsoft
- Apple hit record $416 billion revenue in fiscal 2025 and captured 20% global smartphone market share, overtaking Samsung
- Microsoft reported $77.7 billion Q1 2026 revenue with 18% growth, driven by AI and cloud services expansion
- Analysts set Microsoft price targets at $650-$675, while Apple trades near $260 with a $3.9 trillion market cap
- Thiel’s portfolio now contains just three holdings, with Apple and Microsoft representing his largest positions
PayPal co-founder Peter Thiel executed a major portfolio overhaul in Q3 2025. The billionaire sold his complete Nvidia stake and most of his Tesla holdings. He used the proceeds to increase positions in Apple and Microsoft.
Thiel’s Q3 Form 13F filing showed a dramatic shift. His hedge fund exited Nvidia entirely despite the chip maker’s dominance in AI hardware. He also trimmed Tesla substantially, leaving just three total holdings in his portfolio.
The timing proved interesting for performance. Nvidia stayed flat through Q4 2025 after Thiel’s exit. Tesla gained just 1% in the same period.
Apple rose 7% in Q4 2025 following Thiel’s purchase. Microsoft fell 7% during the quarter. The long-term thesis appears focused beyond short-term returns.
Apple Inc., AAPL
Apple’s Market Leadership
Apple now trades around $260 with a $3.9 trillion market capitalization. The stock moved between $169 and $288 over the past 52 weeks.
The iPhone maker delivered record fiscal 2025 results. Revenue reached $416 billion with $112 billion in net income. Both numbers set company highs.
Q4 2025 revenue totaled $102.5 billion, marking 8% year-over-year growth. Services revenue hit an all-time high of $28.8 billion. The services division now contributes more to Apple’s bottom line with stronger margins.
Apple captured 20% of global smartphone shipments in 2025. This marked the first time the company surpassed Samsung in annual worldwide market share.
The iPhone 17 lineup launched in late 2025 alongside AirPods Pro 3 and new Apple Watch models. These products are expected to drive results in coming quarters.
Apple is restructuring its AI leadership. John Giannandrea will retire in spring 2026. Amar Subramanya takes over as VP of AI to oversee foundation models and safety initiatives.
The company trades at a price-to-earnings ratio in the mid-30s. This premium reflects expectations for services growth and AI development.
Microsoft’s AI Push
Microsoft trades near $470 per share. The stock hit a 52-week high of $555 and a low of $345.
Microsoft Corporation, MSFT
Wall Street remains optimistic about Microsoft’s trajectory. Morgan Stanley maintains an Overweight rating with a $650 target. Goldman Sachs initiated Buy coverage at $655. Jefferies set a $675 price target.
Microsoft posted Q1 2026 revenue of $77.7 billion. That represented 18% growth year-over-year. Earnings per share came in at $4.13, beating analyst estimates.
Management guided Q2 revenue to $79.5-$80.6 billion. This implies 14-16% growth. Many analysts consider the guidance conservative and beatable.
The company returned $10.7 billion to shareholders in Q1 through dividends and share repurchases. Microsoft balances capital returns with heavy AI infrastructure investment.
Analysts cite enterprise software spending and AI adoption as key growth drivers. Microsoft’s Copilot and Azure OpenAI Services continue expanding across business customers.
The company reports fiscal Q2 2026 earnings on January 28. Investors will focus on Azure AI metrics, Copilot adoption rates, and infrastructure spending updates.
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