Peter Thiel’s hedge fund is making a contrarian AI bet that avoids the sector’s most obvious winners. Despite co-founding Palantir Technologies (NASDAQ: PLTR | PLTR Price Prediction), Thiel’s fund doesn’t own a single share of the company. He’s also skipping Nvidia (NASDAQ: NVDA), the chip giant that has delivered 1,268% returns over five years. Instead, his portfolio focuses on three AI application plays that use artificial intelligence rather than selling the infrastructure.
The fund’s largest AI position is Meta Platforms (NASDAQ: META), where Thiel served as a board member from 2005 to 2022 after his early Facebook investment. Meta just reported Q4 revenue of $59.89 billion, up 24% year-over-year, driven by AI-powered advertising improvements. The stock is trading at $661.46, essentially flat for 2026 with a 0.21% year-to-date gain.
Tesla (NASDAQ: TSLA) represents Thiel’s bet on physical AI through autonomous driving and robotics. The company reported Q4 revenue of $24.90 billion, down 3% year-over-year, with CEO Musk positioning Tesla as a “physical AI company.” The stock is down 8.59% year-to-date and trades at $411.11.
Thiel also established a new position in Apple Inc. (NASDAQ: AAPL) in the third quarter of 2025, utilizing capital from the liquidation of his Nvidia holdings. Apple now makes up roughly 27% of the portfolio. Thiel is betting on the iPhone maker’s capacity to profit from AI using its large user base. Year to date, the stock is up 2.30% and trades at $278.12.
The Palantir absence is particularly striking. While the company posted explosive 137% year-over-year U.S. commercial revenue growth to $507 million in Q4, the stock has crashed 23.54% year-to-date. Insider transaction data shows CEO Alex Karp and other executives sold over 700,000 shares between November 2025 and January 2026, while Thiel’s name is conspicuously absent from recent filings. His strategy prioritizes AI users over AI builders.
Top Gaining Stocks
Top Losing Stocks