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More than half of Tiger 21 members are not investing in Nvidia, according to a recent asset allocation report released by the network of ultra-high-net-worth investors and entrepreneurs.
The network’s second-quarter asset allocation report showed that 57% of members are not invested in chip darling Nvidia, and most of those who have chosen to stay away from the stock said they have no plans to take a job at the company.
NVIDIA Chairman Michael Sonnenfeldt said: “While NVIDIA is currently the undisputed leader in artificial intelligence, no company’s growth can continue forever, and competitors often catch up, leading to market readjustments.” super rich club. Its members’ personal assets are collectively worth more than $165 billion, according to data provided by Sonnenfeldt.
Team members, Founded in 1999 by Sonnenfeldtsharing advice on wealth preservation, investing and philanthropy.
Tiger 21 has 123 groups in 53 markets. The network has more than 1,450 members.
Of the 43% of members who are invested in Nvidia, the majority do not intend to increase their holdings of the stock due to concerns that the stock has risen too high.
Those concerns appear to be well-founded, with Nvidia’s stock price falling 9% overnight.
43% of club members surveyed also don’t expect Nvidia’s success to continue into the next decade.
Sonnenfeld said some members have chosen to avoid the tech sector entirely, so they don’t have Nvidia in their portfolios, preferring real estate or other industries.
“For others, it’s due to the nature of technology investment today. Tiger 21 members watched Tesla rise to the point where almost every major automaker now offers electric vehicles, so while Nvidia is the leader today, some Tiger 21 members think it’s just a matter of time before competitors catch up,” he said.
Sonnenfeld also said that club members are more focused on preserving wealth than pursuing high returns.
“Despite its impressive growth, they may avoid Nvidia due to its volatility and the risks associated with investing in technology,” he said.
Nvidia, known as “the world’s most important stock”, rode the artificial intelligence craze earlier this year to a market capitalization of US$3 trillion, a nearly nine-fold surge since the end of 2022.
However, the company’s rapid growth stalled a bit this summer. On August 7, the stock fell about 27%, below its all-time high set in June.
Nvidia led semiconductor stocks lower amid a sell-off on Wall Street on Tuesday, with the stock continuing its slide in after-hours trading, down 2%.
Still, Sonnenfeld is optimistic about the broader AI industry. “The potential of artificial intelligence seems to be one of, if not the, most investment-worthy themes in the entire history of finance,” Sonnenfeld said.
According to Tiger 21’s most recent member allocation report, the majority of its member allocations are in private equity, accounting for 28%. Despite high interest rates, real estate still accounts for 26% of members’ portfolios, while public stocks make up 22% of their asset allocation.
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