{"id":18025,"date":"2025-11-24T18:33:06","date_gmt":"2025-11-24T13:03:06","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=18025"},"modified":"2025-11-24T18:33:06","modified_gmt":"2025-11-24T13:03:06","slug":"ppfas-rajeev-thakkar-mag-7-china-risk-warning","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/ppfas-rajeev-thakkar-mag-7-china-risk-warning\/","title":{"rendered":"PPFAS\u2019 Rajeev Thakkar Backs \u2018Mag 7\u2019, Calls China\u2019s Cheap Stocks a Risky Trap"},"content":{"rendered":"

At a time when global investors are debating whether US technology giants are entering bubble territory, PPFAS Mutual Fund CIO Rajeev Thakkar offered a firm, data-backed defence of America\u2019s \u2018Magnificent Seven\u2019. Speaking at the fund house\u2019s annual shareholder meeting in Mumbai on November 22, Thakkar said the top US tech platforms continue to generate exceptional cash flows, which justify their current valuations even amid the ongoing AI frenzy.<\/p>\n

Thakkar drew a clear distinction between established US tech giants\u2014such as Alphabet, Meta, Amazon and Microsoft\u2014and the newer generation of AI startups. \u201cThese are businesses which earn a huge amount of cash flow,\u201d he emphasized, noting that many AI upstarts are still in the cash-burn phase, where revenues fall short of massive capital expenses. He specifically mentioned OpenAI as an example of a company still far from generating sustained profits.<\/p>\n

NVIDIA\u2019s dominance is not risk-free<\/h2>\n

Thakkar also addressed the growing investor excitement around semiconductor stocks. While acknowledging NVIDIA\u2019s leadership in AI chips, he cautioned that its margins depend heavily on the cyclicality of the semiconductor market. \u201cNVIDIA is dependent on the chip cycle\u2026 margins can break,\u201d he said, pointing out that hyperscalers are already developing their own AI chips. If this trend accelerates, NVIDIA could face declining demand from some of its biggest customers.<\/p>\n

\u2018This is no Nifty Fifty bubble\u2019<\/h2>\n

Responding to comparisons with the Nifty Fifty era of the 1970s\u2014another period when investors crowded into a handful of top companies\u2014Thakkar dismissed fears of a similar valuation bubble today. He said current multiples of 20\u201330 times earnings remain far below bubble levels, especially considering the strong balance sheets of US tech leaders. He added that Berkshire Hathaway\u2019s recent $5 billion investment in Alphabet further supports the idea that valuations remain reasonable.
\u201cIf it were Nifty Fifty kind of valuation, one wouldn\u2019t expect Berkshire to create a fresh investment there,\u201d he argued.<\/p>\n

Also Read<\/strong>: Sensex Settles 550 Points Lower From Day\u2019s High, Nifty Ends Near 25,950 as Market Declines Deepen<\/a><\/em><\/p>\n

PPFAS maintains strong US tech exposure<\/h3>\n

PPFAS Mutual Fund has long maintained exposure to US tech companies through its flagship Flexi-cap Fund. As of October 2025, the fund had 11% of AUM in overseas stocks, with allocations led by Alphabet (3.75%), Meta Platforms (2.70%), Microsoft (2.68%) and Amazon (2.37%).<\/p>\n

This strategy has paid off. The Flexi-cap Fund continues to be one of the top-performing schemes, delivering:<\/p>\n