As concerns over an artificial intelligence (AI) investment bubble continue to spread, major global investors are successively offloading their shares in Nvidia. Leading Wall Street investors are also warning about overvaluation in the stock market, particularly among technology stocks, fueling anxiety that the AI investment cycle may have already peaked.

According to a report submitted to the U.S. Securities and Exchange Commission (SEC) by Thiel Macro, the fund run by billionaire investor Peter Thiel, founder of PayPal and Palantir, on the 17th (local time), the company sold all 537,742 shares of Nvidia it held between July and September. Based on the average Nvidia share price during this period, the sale is estimated to have totaled about 100 million dollars (approximately 146 billion won).

Billionaire investor Peter Thiel, founder of PayPal and Palantir. Bloomberg

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In addition to Nvidia, Thiel also significantly reduced his Tesla holdings from 272,613 shares to 65,000 shares. Meanwhile, he newly acquired 79,181 shares of Apple and 49,000 shares of Microsoft, restructuring his portfolio. By completely removing Nvidia, the leading AI stock, from his portfolio, the market is interpreting this move as a warning signal of an AI bubble.

Previously, SoftBank, led by Chairman Masayoshi Son, also sold its entire stake in Nvidia last month, amounting to 5.83 billion dollars (about 8.525 trillion won). Michael Burry, the real-life figure behind the movie "The Big Short" and the investor who predicted the 2008 global financial crisis, also disclosed short positions against Nvidia and Palantir. As major investors continue to sell or hedge against Nvidia, anxiety surrounding AI investments is intensifying.

Masayoshi Son, Chairman of SoftBank. Photo by Yonhap News Agency

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Among investors, skepticism is growing over whether the massive capital expenditures required for AI development can lead to sustained high profitability over the long term. Especially after Nvidia became the world's first company to reach a 5 trillion dollar (about 7,310 trillion won) market capitalization last month, optimism and bubble fears regarding AI are clashing on Wall Street, resulting in a rollercoaster market with repeated ups and downs.

Jeffrey Gundlach, CEO of DoubleLine Capital. Photo by Bloomberg

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Additionally, Jeffrey Gundlach, CEO of DoubleLine Capital and known as the "Bond King," has also raised his guard by pointing out the overheating in the stock market. Appearing on Bloomberg's "Odd Lots" podcast, he stated, "The current health of the U.S. stock market is the most vulnerable I have seen in my entire career," adding, "The market is incredibly speculative, and this speculative environment has soared to exceptionally high levels. This happens every time."

As major investors continue to warn about AI overheating and reduce their positions, Nvidia's earnings report scheduled for the 19th is expected to serve as a key turning point for future market trends.

Ross Mayfield, investment strategist at Baird, stated, "It is important to confirm that demand for Nvidia still exists and is not slowing down," adding, "If the chip demand outlook declines even slightly, the market will react negatively."

Dennis Palmer, Chief Investment Officer (CIO) at Montis Financial, said, "It would not be surprising if Nvidia reports strong earnings and raises its earnings forecast," and predicted, "Concerns about endless AI capital expenditure could increase."

Jensen Huang, CEO of Nvidia. Photo by Kang Jin-hyung

Meanwhile, shares of Alphabet, Google's parent company, rose 3.11% after it was disclosed that Berkshire Hathaway, led by legendary investor Warren Buffett, had newly acquired a 4.3 billion dollar (6.288 trillion won) stake in the company. The market is now watching closely to see whether Berkshire Hathaway, which has traditionally focused on value stocks, will further expand its investments in large growth tech stocks. Nvidia shares fell by 1.88%.

Warren Buffett. Photo by AP News Agency

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