Nvidia Sell Signal? 3 Market Legends Dump The Stock

Author: Erica Kollmann | November 19, 2025 02:57pm

A recent wave of exits by Wall Street heavyweights has sparked fears that NVIDIA Corp. (NASDAQ:NVDA) stock may have peaked. Three legendary investors—Michael Burry, SoftBank's Masayoshi Son and Peter Thiel—have made decisive moves against holding Nvidia. 

• NVDA stock is moving. See the real-time price action here.

Should retail investors proceed with caution? Here's a look at the moves. 

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Smart Money Flashing Warning Lights

• Michael Burry: The “Big Short” fame investor's firm, Scion Asset Management, disclosed substantial put options against Nvidia in its Q3 filings. It was a direct bearish bet, profiting only if the stock price declined, suggesting Burry saw a large disconnect between Nvidia's valuation and reality.
• SoftBank: Masayoshi Son's conglomerate completely exited its $5.8 billion Nvidia position in October 2025. While SoftBank was an early believer, the total liquidation allows them to pivot capital into “application layer” AI (like its massive OpenAI investment), hinting that the infrastructure boom in chips may be saturated.
• Peter Thiel: Thiel's hedge fund, Thiel Macro, followed suit, closing out its entire Nvidia stake during Q3 2025. Thiel has publicly compared the current tech environment to the Dot-com bubble, viewing the AI hype cycle as overextended.

The Signal: Profit Taking or Crash? 

While alarming, these exits aren’t a guaranteed crash signal. “Smart money” often sells early to lock in gains after parabolic runs. 

SoftBank, for instance, isn’t leaving AI. It's just rotating from Nvidia's AI hardware to OpenAI's AI software. 

However, when three distinct market titans — a value contrarian, a visionary speculator and a tech insider — all hit the “sell” button simultaneously, it could suggest the “easy money” phase of the Nvidia trade is over.

The Verdict: 

The consensus among SoftBank, Thiel and Burry is that Nvidia was priced for perfection in a market that may be forming a bubble. 

For investors, this doesn’t necessarily mean “panic sell,” but it is a loud signal to temper expectations and tighten risk management.

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Posted In: NVDA