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Aug. 19 (UPI) — Billionaire tech investor Peter Thiel has withdrawn from a high-profile libertarian summit in Argentina where he was scheduled to appear alongside President Javier Milei, days after protesters dressed as Gandalf demonstrated outside his $12 million Buenos Aires mansion.

Thiel had been scheduled as one of the central speakers at the “Vientos de Cambio,” or “Winds of Change,” summit on Sept. 1 and 2 in Buenos Aires, organized by the Libertad y Progreso Foundation. He was expected to hold a public conversation with Chilean commentator Axel Kaiser, while Milei was scheduled to close the gathering, according to Argentine news outlet elDiarioAR.

The foundation said Thiel canceled because of scheduling and logistical issues and did not connect his decision to the protest.

“Due to scheduling and logistical reasons completely unrelated to the organization of the event, Peter Thiel will ultimately be unable to travel to Buenos Aires,” Libertad y Progreso said in a statement cited by elDiarioAR. The organization said Thiel and his team had tried to reconcile the appearance with previous commitments but that travel difficulties made his participation impossible.

The summit is intended to showcase Argentina’s economic transformation under Milei and will bring together government officials, investors, academics and think tanks from Latin America, the United States and Europe. Economy Minister Luis Caputo and Deregulation Minister Federico Sturzenegger are among the government officials scheduled to participate, according to La Nación.

Thiel’s withdrawal came after an unusual demonstration Monday outside his home in Barrio Parque, one of Buenos Aires’ most exclusive neighborhoods.

A group of protesters wearing gray robes, pointed hats and white beards dressed as Gandalf, the wizard from J.R.R. Tolkien‘s The Lord of the Rings, gathered outside the property carrying a banner reading, “You shall not pass,” La Nación reported.

The choice of character was a pointed reference to Thiel’s well-documented fascination with Tolkien. Thiel co-founded data analytics company Palantir Technologies, whose name comes from the “palantíri,” seeing stones in Tolkien’s fictional universe that allow their users to communicate across long distances and view faraway events.

The demonstrators protested Thiel’s growing presence and investments in Argentina, including a recently disclosed $76 million stake in oil producer Vista Energy, according to elDiarioAR.

Thiel Macro LLC reported holding 1,189,792 American depositary shares of Vista at the end of the second quarter, worth approximately $76 million and representing about 1% of the company, according to a U.S. Securities and Exchange Commission filing cited by La Nación. The Vista investment was the fund’s second-largest reported equity position behind Amazon and represented about 18% of its reported stock portfolio.

Vista is one of the major operators in Vaca Muerta, Argentina’s massive shale oil and gas formation, making the investment Thiel’s most significant publicly disclosed financial bet in the country.

His financial expansion has come alongside increasingly visible ties to Milei and senior members of his government.

Thiel met with Milei at the Casa Rosada presidential palace in April, part of a series of meetings between the two over the past two years. El País reported that the April meeting was their fourth since 2024, following encounters at the Casa Rosada in January 2024, at the Milken Institute conference in Los Angeles that May and another meeting in Buenos Aires.

During his latest stay in Argentina, Thiel also met with presidential adviser Santiago Caputo, while Economy Minister Luis Caputo received him at the Economy Ministry in May, La Nación reported.

Thiel temporarily settled in Buenos Aires with his husband and children in early April and purchased a six-bedroom mansion in Barrio Parque for about $12 million, according to La Nación.

His outreach has extended beyond Milei’s political circle. On June 3, Thiel held a more than three-hour meeting at his home with opposition lawmaker and social leader Juan Grabois, one of Milei’s most outspoken political opponents. Grabois later said the meeting was intended to help him understand the political and technological project of Silicon Valley’s emerging elite.

Halfway through a turbulent year, a clear pattern has emerged across global markets: anything tied to the physical build-out of AI has soared, while several other assets that investors traditionally turn to in uncertain times have stumbled.

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War in the Middle East, political upheaval and an oil-price spike formed the backdrop, yet stock markets in several regions still pushed to fresh record highs.

According to Dan Coatsworth, head of markets at AJ Bell, companies on the receiving end of the AI spending boom were the standout investments of the first half, while Bitcoin proved “a shocker” and gold lost its shine.

It is, Coatsworth noted, a remarkable run of events for only half a year’s worth of trading.

The most spectacular gains came from an unglamorous corner of the technology world: the firms that make memory chips.

As demand for AI computing collided with tight supply, prices surged and took shares with them. SanDisk led the US market with a gain of over 850% in six months, while Western Digital, Micron Technology and Seagate Technology all more than tripled in value, a pace of return that would ordinarily take many years to achieve.

The driver is the vast quantity of high-speed memory and storage needed to train and run AI systems as the largest technology companies race to expand their data centres.

Other US equities that soared on the back of the AI trade include Intel, Dell, Advanced Micro Devices (AMD) and Applied Materials, which all rose between 150% and 280% year to date.

The rush also lifted emerging markets, where Asian chipmakers such as TSMC and SK Hynix carry heavy weight, helping South Korea’s KOSPI double in value, Japan’s Nikkei 225 climb roughly 40% and the MSCI Emerging Markets index rise by around 27%.

In Europe, the FTSE 100 gained 7% in the first half of the year, France’s CAC 40 rose 5%, while Germany’s DAX gained 2%. Meanwhile, the MSCI India index fell 5% and Hong Kong’s Hang Seng lost 6%.

Notably, the memory rally has begun to unwind in recent days, with several of the same names caught in a sharp technology sell-off.

The fallen favourites, takeovers and the trades that cooled

The flipside was brutal for yesterday’s winners.

Previous AI darlings Meta and Microsoft were left behind, down 14% and 24% respectively on a total-return basis, as heavy AI spending turned the technology giants into more capital-hungry businesses and investors stopped paying a premium for them.

Microsoft now trades at its cheapest level in a decade, leaving both it and Meta valued more modestly than McDonald’s, an outcome few would have predicted at the height of the “Magnificent 7” craze.

Elsewhere, the assets many expected to lead disappointed.

Gold took investors on a volatile ride. After surging to a record high of $5,594.82 an ounce on 29 January, the precious metal lost around 28% from its peak despite the geopolitical turmoil that would normally send investors flocking to safe-haven assets. Instead, its appeal was undermined by higher bond yields and cash rates, which offer an income that a gold bar cannot.

Bitcoin fared worse still, falling 28% since the start of the year as enthusiasm for crypto drained away and money rotated towards technology shares instead.

In the UK, takeovers did much of the heavy lifting.

Six FTSE 100 companies, among them Glencore, Schroders and Segro, attracted bid interest in the first half, a sign that buyers still see value in British blue chips even after a three-year re-rating.

Housebuilders such as Persimmon struggled against a sluggish property market, while tech-adjacent names like Experian and RELX were swept up in fears about AI disruption.

One trade that conspicuously cooled was defence.

After a storming 2025, the likes of BAE Systems, Germany’s Rheinmetall and America’s Palantir all gave ground, as the good news on rising military budgets looked fully priced in and investors drifted elsewhere.

This article does not constitute financial advice. Always do your own research and invest according to your specific circumstances.