Peter Thiel has made a decisive portfolio shift that is sending a clear signal to the market. The Palantir co-founder and Silicon Valley billionaire has exited Nvidia, reduced his Tesla exposure, and concentrated heavily on two technology companies he believes are best positioned for the next phase of artificial intelligence growth.
As of the third quarter, Apple and Microsoft now represent 61% of the portfolio managed by Thiel Macro. The move reflects a sharp focus on companies with scale, pricing power, and clear paths to AI monetization.
Inside Peter Thiel’s Hedge Fund Strategy
Peter Thiel runs Thiel Macro, a hedge fund managing approximately $74 million in assets. While this fund represents only a small portion of Thiel’s estimated $26 billion net worth, its concentrated structure offers insight into his highest-conviction ideas.
During the third quarter, Thiel Macro made three notable moves:
Following these changes:
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Apple now represents 27% of the fund
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Microsoft accounts for 34%
Together, the two companies dominate the portfolio.
Thiel also continues to hold significant personal stakes in Palantir Technologies, including more than:
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3% of Class A shares
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30% of Class B shares
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33% of Class F shares
Apple Becomes a Core AI Bet With a 27% Allocation
Apple has emerged as one of the largest holdings in the Thiel Macro portfolio, accounting for 27% of total assets.
The company’s strength lies in its integrated ecosystem of hardware, software, and services — supported by custom semiconductor design that improves performance, energy efficiency, and long-term margins.
Apple Financial Performance Shows Strong Momentum
Apple reported strong results for the first quarter of fiscal 2026 (ended Dec. 27):
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Revenue: $143.7 billion (+16%)
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GAAP EPS: $2.84 (+18%)
Growth was driven by strong iPhone demand and continued expansion in services. China sales rebounded sharply, rising 38% after declining in the prior fiscal year. Apple exceeded analyst expectations on both revenue and earnings despite tariff pressures.
Apple’s AI Strategy Is Accelerating
Apple recently confirmed plans to integrate Alphabet’s Gemini models into Siri, signaling a strategic shift away from building large language models entirely in-house.
This move allows Apple to accelerate AI deployment while focusing internal resources on product integration and monetization. In late 2024, Apple introduced Apple Intelligence, a suite of generative AI features for new iPhones and Macs.
These tools are currently free, but Bloomberg reports Apple plans to introduce a premium tier in the coming years. The Gemini partnership is expected to enhance Apple Intelligence beyond Siri and support long-term services revenue growth.
Apple stock currently trades at 33× earnings, with projected earnings growth of roughly 10% annually over the next three years.
Microsoft Dominates the Portfolio With a 34% Allocation
Microsoft is the largest position in Thiel Macro, accounting for 34% of assets.
The company is leveraging its dominance in enterprise software to monetize generative AI through Copilot, which is now embedded across productivity, ERP, and business intelligence tools.
CEO Satya Nadella recently reported:
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Copilot seats increased 160% in the latest quarter
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Daily active users grew 10×
Microsoft Expands AI Across Enterprise Infrastructure
Microsoft recently launched Agent 365, a platform enabling businesses to deploy and manage AI agents across enterprise environments.
The company also continues expanding AI monetization through Azure. In 2024, Microsoft consolidated its AI services into a unified platform called Foundry.
During the December quarter, the number of customers spending $1 million+ per quarter on Foundry increased 80%.
OpenAI Partnership Strengthens Microsoft’s Advantage
Microsoft owns a 27% equity stake in OpenAI and holds exclusive rights to its most advanced models.
Developers seeking access to these models must use Azure or work directly with OpenAI. According to The Information, OpenAI shares 20% of its revenue with Microsoft, creating a direct financial benefit tied to AI adoption.
Microsoft stock declined 10% following its latest earnings report due to higher AI infrastructure spending and slower Azure growth than expected. However, adjusted earnings still rose 24%, and the stock now trades at 27× earnings.
What Thiel’s Portfolio Concentration Signals
Peter Thiel’s decision to sell Nvidia, reduce Tesla, and allocate 61% of Thiel Macro to Apple and Microsoft highlights a clear preference:
Not hardware. Not speculation.
Platforms that can turn AI into recurring cash flow.
For investors tracking high-conviction moves from major tech insiders, Thiel’s portfolio construction offers a strong signal about where long-term AI value may emerge.
