TLDRNvidia shares fell 1.2% in premarket trading to $187.95 on Monday morningPeter Thiel’s hedge fund Thiel Macro LLC sold its entire position of 537,742 Nvidia shares during the third quarterThe stake was worth approximately $100 million based on September 30 closing pricesNvidia reports earnings Wednesday with analysts expecting $1.23 per share on $54.83 billion revenueWall Street analysts remain bullish on Nvidia despite Thiel’s exit, with D.A. Davidson maintaining a $250 price targetNvidia opened lower on Monday as news broke that billionaire Peter Thiel’s hedge fund has completely exited its position in the chipmaker. The stock dropped 1.2% to $187.95 in premarket trading.NVIDIA Corporation, NVDAThiel Macro LLC disclosed in a 13F filing that it sold all 537,742 shares of Nvidia during the quarter ending September 30. Based on the closing price from that date, the position was valued at roughly $100 million.The timing catches attention since Nvidia is set to report quarterly earnings after market close on Wednesday. This marks another high-profile investor stepping back from the AI chip leader.SoftBank Group previously announced a similar move in October, selling off its Nvidia shares for $5.83 billion. Both exits happened while questions swirl about AI investment valuations.Despite these moves, Wall Street analysts maintain confidence in Nvidia’s upcoming report. The consensus forecast calls for adjusted earnings of $1.23 per share on revenue of $54.83 billion for the October quarter.Analyst Optimism Remains StrongD.A. Davidson analyst Gil Luria kept his Buy rating and $250 price target on the stock. He pointed to continued strong demand from multiple customer segments.“Given trends we’re seeing across hyperscalers, neoclouds, and frontier labs, we see no reason to believe that demand is slowing down,” Luria wrote in a research note. He added that the market may be underestimating compute demand over the next few years.The analyst commentary contrasts with Thiel’s decision to exit. His fund now holds Apple, Microsoft, and a reduced Tesla stake as its primary positions.Thiel has backed Substrate, a US-based Nvidia competitor, through his venture capital activities. He also invested in AI startups Mercor and Cognition AI.Mixed Hedge Fund SentimentAn analysis of 909 hedge fund 13F filings revealed split opinions on Nvidia. During the third quarter, 161 funds increased their positions while 160 decreased them.This divide reflects broader uncertainty about AI company valuations. These firms continue raising and spending money at high rates but haven’t yet proven monetization models that justify the investment levels.Nvidia shares have gained just 2% since the end of September. The stock did climb 1.8% on Friday after buyers reversed earlier losses during the session.Other chip stocks showed mixed movement Monday morning. Advanced Micro Devices slipped 0.3% while Broadcom traded roughly flat in premarket activity.Thiel Macro’s complete exit from Nvidia during the third quarter positions the fund differently from many peers heading into the earnings announcement. The filing showed the fund eliminated its position before the current quarter began.The post Nvidia (NVDA) Stock: Peter Thiel’s Fund Exits Entire Position Before Earnings appeared first on Blockonomi.