Why Peter Thiel Shifted His Portfolio to Apple and Microsoft
Tech billionaire and PayPal co-founder Peter Thiel made a bold move in Q3 2025, completely divesting from Nvidia and reducing his Tesla holdings to focus on two major companies: Apple and Microsoft. This shift was revealed in his hedge fund’s Q3 Form 13F filing and has left financial analysts buzzing about its implications.
Apple’s Record-Breaking Year
Apple Inc. (AAPL) demonstrated impressive growth in 2025, achieving a record-breaking $416 billion in revenue with $112 billion in net income. The company notably captured a 20% share of global smartphone shipments, surpassing Samsung for the first time. This was propelled by the launch of the iPhone 17, AirPods Pro 3, and new Apple Watch models. With a market capitalization of $3.9 trillion and a stock price hovering around $260, Apple’s future looks brighter than ever.
The company is also doubling down on artificial intelligence, restructuring its AI leadership. Amar Subramanya will take over as VP of AI, signaling that innovation in AI and its incorporation into services will continue to be a core driver of growth.
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Microsoft’s Aggressive AI Expansion
Meanwhile, Microsoft (MSFT) has been strengthening its AI and cloud services portfolio, reporting $77.7 billion revenue in Q1 2026, marking an 18% year-over-year growth. Products like Microsoft Copilot and Azure OpenAI Services have become integral to their business offerings, with enterprises embracing AI-driven software more than ever. Analysts remain confident in Microsoft’s long-term potential with price targets ranging from $650 to $675 per share.
Microsoft has committed to heavy AI infrastructure investments while continuing to reward shareholders with dividends and share buybacks. This balanced approach has positioned them as a leader in the competitive AI and cloud-services market.
What’s Next for Thiel’s Investments?
Peter Thiel’s strategic shift indicates a calculated focus on giants thriving in both tech hardware and AI innovation. Though Nvidia leads in AI hardware dominance, the chip maker saw neutral performance through late 2025, raising questions about its scalable growth. Tesla’s modest gains didn’t seem to align with Thiel’s long-term vision either. Instead, his new primary positions in Apple and Microsoft suggest confidence in their ability to lead the next wave of global technology innovation.
