Over half of the ultra-rich club's members worth $165 billion do not invest in Nvidia.

• A recent report by a network of ultra high net worth investors and entrepreneurs reveals that over half of Tiger 21's members do not invest in Nvidia.
• Most of the 43% Nvidia investors do not plan to increase their stock holdings, as they are concerned that its price has already reached an unsustainable level.
• U.S. markets experienced a broad sell-off, causing Nvidia's stock to decline 9.5% overnight and erase approximately $300 billion of its market value.

A recent report by a network of ultra-high-net-worth investors and entrepreneurs reveals that more than half of Tiger 21's members do not invest in Nvidia.

The report on the network's second-quarter asset allocation showed that 57% of its members are not invested in Nvidia, with most of those who have opted out stating that they do not plan to initiate a position in the company.

Michael Sonnenfeldt, chairman of the ultra-rich club, stated that although Nvidia currently dominates the AI market, a company's growth is not permanent, and competitors eventually catch up, resulting in a reevaluation of the market. The members of the club collectively possess over $165 billion in personal assets, as per data provided by Sonnenfeldt.

Since its establishment in 1999 by Sonnenfeldt, the group has been providing advice to its members on wealth preservation, investments, and philanthropic endeavors.

Over 1,450 members are part of the network that comprises 123 groups in 53 markets.

Most of the 43% Nvidia investors do not plan to increase their stock holdings, as they are concerned that the stock has already reached an unsustainable level.

Nvidia's stock dropped 9.5% overnight, erasing approximately $300 billion of its market value, as part of a broader market downturn in the United States.

Nearly half of the club's surveyed members anticipate Nvidia's success to wane in the next decade.

Some members of the portfolio have opted to steer clear of technology and instead focus on real estate or other sectors, as stated by Sonnenfeldt.

"The reason for others' lack of confidence in tech investing today is due to the rapid advancement of electric vehicles (EVs) in the automotive industry. While Nvidia currently leads the market, some Tiger 21 members believe it is only a matter of time before the competition catches up," he stated.

Sonnenfeldt stated that the club's members prioritize wealth preservation over seeking high returns.

He stated that they might be steering clear of Nvidia because of its unpredictability and the inherent risks involved in technology investments, even though it has experienced remarkable growth.

Earlier this year, Nvidia, known as 'the world's most important stock,' experienced a nine-fold increase in market cap to $3 trillion, thanks to the artificial intelligence boom.

Despite its rapid growth, the company experienced a slight slowdown this summer. On August 7th, the stock dropped approximately 27%, trading below its previous all-time high set in June.

On Tuesday, Nvidia's semiconductor shares led the decline on Wall Street, falling 2% in extended trading after a sell-off.

Sonnenfeldt believes that the AI industry has great potential and is a highly investable theme in financial history.

Despite high interest rates, real estate accounts for 26% of Tiger 21's members' portfolios, while private equity holds the largest share at 28%. Public equities make up 22% of their asset allocation.