Marketdash
Back to News

Three Market Legends Just Dumped Their Nvidia Stakes: Should You Worry?

MarketDash Editorial Team
18 days ago
Michael Burry, SoftBank's Masayoshi Son, and Peter Thiel have all made decisive exits from Nvidia. When three investing titans from completely different philosophies all hit the sell button at once, retail investors should probably pay attention.

When one legendary investor sells a hot stock, it's interesting. When three do it at the same time, it's worth paying attention. Nvidia Corp. (NVDA) has been the poster child for the AI revolution, but a trio of market heavyweights just walked away from the party.

Michael Burry, SoftBank's Masayoshi Son, and Peter Thiel have all made decisive moves against holding Nvidia. These aren't your average fund managers—they're investing legends with very different styles. So what do they see that has them heading for the exits?

Three Very Different Investors, One Unanimous Decision

Michael Burry of "Big Short" fame went beyond just selling. His firm, Scion Asset Management, disclosed substantial put options against Nvidia in its Q3 filings. That's a direct bearish bet that only pays off if the stock drops, signaling Burry sees a major gap between Nvidia's valuation and its underlying reality.

Masayoshi Son's SoftBank completely liquidated its $5.8 billion Nvidia position in October 2025. This is particularly notable because SoftBank was an early believer in the AI chip story. The total exit suggests they're pivoting capital into what they call the "application layer" of AI—think their massive OpenAI investment—which hints that the infrastructure boom in chips might be reaching saturation.

Peter Thiel's hedge fund, Thiel Macro, closed out its entire Nvidia stake during Q3 2025. Thiel has been publicly vocal about comparing today's tech environment to the Dot-com bubble, viewing the AI hype cycle as overextended and due for a correction.

Profit Taking or Warning Sign?

Here's the thing: these exits aren't necessarily a guaranteed crash signal. Smart money often sells early to lock in gains after parabolic runs, and Nvidia has certainly had one of those.

SoftBank isn't abandoning AI—it's rotating from Nvidia's AI hardware to OpenAI's AI software. That's a strategic shift, not a vote of no confidence in artificial intelligence itself.

But when three distinct market titans—a value contrarian, a visionary speculator, and a tech insider—all hit the sell button simultaneously, it suggests something meaningful. At minimum, it signals that the "easy money" phase of the Nvidia trade is probably over.

What It Means for You

The consensus among these three seems clear: Nvidia was priced for perfection in a market that may be forming a bubble. Each investor has different reasons and different strategies, but they've all reached the same conclusion about timing.

For retail investors, this doesn't necessarily mean "panic sell right now." But it is a loud signal to temper expectations and tighten risk management. When the smart money exits in unison, the risk-reward equation has probably shifted.

Back to News

Three Market Legends Just Dumped Their Nvidia Stakes: Should You Worry?

MarketDash Editorial Team
18 days ago
Michael Burry, SoftBank's Masayoshi Son, and Peter Thiel have all made decisive exits from Nvidia. When three investing titans from completely different philosophies all hit the sell button at once, retail investors should probably pay attention.

When one legendary investor sells a hot stock, it's interesting. When three do it at the same time, it's worth paying attention. Nvidia Corp. (NVDA) has been the poster child for the AI revolution, but a trio of market heavyweights just walked away from the party.

Michael Burry, SoftBank's Masayoshi Son, and Peter Thiel have all made decisive moves against holding Nvidia. These aren't your average fund managers—they're investing legends with very different styles. So what do they see that has them heading for the exits?

Three Very Different Investors, One Unanimous Decision

Michael Burry of "Big Short" fame went beyond just selling. His firm, Scion Asset Management, disclosed substantial put options against Nvidia in its Q3 filings. That's a direct bearish bet that only pays off if the stock drops, signaling Burry sees a major gap between Nvidia's valuation and its underlying reality.

Masayoshi Son's SoftBank completely liquidated its $5.8 billion Nvidia position in October 2025. This is particularly notable because SoftBank was an early believer in the AI chip story. The total exit suggests they're pivoting capital into what they call the "application layer" of AI—think their massive OpenAI investment—which hints that the infrastructure boom in chips might be reaching saturation.

Peter Thiel's hedge fund, Thiel Macro, closed out its entire Nvidia stake during Q3 2025. Thiel has been publicly vocal about comparing today's tech environment to the Dot-com bubble, viewing the AI hype cycle as overextended and due for a correction.

Profit Taking or Warning Sign?

Here's the thing: these exits aren't necessarily a guaranteed crash signal. Smart money often sells early to lock in gains after parabolic runs, and Nvidia has certainly had one of those.

SoftBank isn't abandoning AI—it's rotating from Nvidia's AI hardware to OpenAI's AI software. That's a strategic shift, not a vote of no confidence in artificial intelligence itself.

But when three distinct market titans—a value contrarian, a visionary speculator, and a tech insider—all hit the sell button simultaneously, it suggests something meaningful. At minimum, it signals that the "easy money" phase of the Nvidia trade is probably over.

What It Means for You

The consensus among these three seems clear: Nvidia was priced for perfection in a market that may be forming a bubble. Each investor has different reasons and different strategies, but they've all reached the same conclusion about timing.

For retail investors, this doesn't necessarily mean "panic sell right now." But it is a loud signal to temper expectations and tighten risk management. When the smart money exits in unison, the risk-reward equation has probably shifted.