{"id":423380,"date":"2025-09-14T09:44:09","date_gmt":"2025-09-14T09:44:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/423380\/"},"modified":"2025-09-14T09:44:09","modified_gmt":"2025-09-14T09:44:09","slug":"heres-a-4-stock-isa-portfolio-to-consider-for-the-ai-revolution","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/423380\/","title":{"rendered":"Here’s a 4-stock ISA portfolio to consider for the AI revolution"},"content":{"rendered":"

\"ISA<\/p>\n

Image source: Getty Images<\/p>\n

Many investors will already have lots of exposure to artificial intelligence (AI) in their Stocks and Shares ISAs<\/a> through indexes such as the S&P 500<\/strong> and Nasdaq 100<\/strong>. These are dominated by the Magnificent 7 group of tech stocks that are investing huge amounts in the technology.<\/p>\n

However, for those wanting more targeted exposure to AI, here are four other stocks to consider.<\/p>\n

Foundational layer <\/p>\n

Let\u2019s start with two tech firms that are absolutely central to the AI revolution. That\u2019s ASML<\/strong> (NASDAQ:ASML<\/a>) and Taiwan Semi<\/strong> (NYSE:TSM<\/a>), or TSMC. <\/p>\n

ASML\u2018s the only company in the world that supplies the advanced EUV (extreme ultraviolet) lithography machines needed to make cutting-edge semiconductors. TSMC\u2019s a major buyer of these systems, using them to manufacture AI chips for Nvidia<\/strong> and others.\u00a0\u00a0<\/p>\n

Given their foundational importance, you\u2019d be forgiven for thinking these stocks are super expensive<\/a>. But that\u2019s not really the case, with ASML and TSMC trading on forward price-to-earnings (P\/E) ratios of 26 and 22 respectively.<\/p>\n

By contrast, Nvidia and Tesla<\/strong> carry forward P\/E multiples of 39 and 138, while AI software firm Palantir<\/strong> is on another planet at 122 times sales. So they\u2019re discounted to many other AI stocks, particularly those in America (ASML\u2019s Dutch).<\/p>\n

As for risks, ASML can\u2019t promise any growth in 2026 due to macroeconomic and geopolitical uncertainties, which are rattling chipmakers. This situation adds uncertainty, though it\u2019s worth noting that analysts see double-digit growth resuming in 2027.<\/p>\n

TSMC\u2019s facing no such headwinds, and sees 20%+ growth continuing over the medium term. However, any backtracking on these targets is a risk, as is any escalation in China-Taiwan tensions.<\/p>\n

AI agents <\/p>\n

Next, I also think enterprise software company Salesforce<\/strong> (NYSE:CRM<\/a>) is attractively priced. After falling 26% year to date, the stock\u2019s forward P\/E multiple is just 22 (slightly less than the S&P 500).<\/p>\n

However, the firm continues to grow, with Q2 revenue up 10% to $10.2bn. And the company\u2019s Agentforce platform for AI agents has closed more than 12,500 deals since launching last year, with over 6,000 of them paid.<\/p>\n

CEO Marc Benioff commented: \u201cThese results reflect the success of our customers \u2014 like Pfizer<\/strong>, Marriott<\/strong>, and the US Army \u2014 who are transforming into agentic enterprises, where humans and AI agents work side by side to reimagine workflows, accelerate productivity, and deliver customer success.\u201d<\/p>\n

While economic uncertainty remains a risk and could slow customer adoption of AI agents, I remain bullish long term. Especially while the stock\u2019s trading quite cheaply.<\/p>\n

Finally, a basket of stocks now in the shape of Scottish Mortgage Investment Trust<\/strong>. The FTSE 100<\/strong> firm\u2019s portfolio holds many obvious AI names including Nvidia, Meta<\/strong> and Amazon<\/strong>, as well ASML and TSMC.<\/p>\n

However, Scottish Mortgage is also invested in AI data platforms Snowflake<\/strong> and Databricks. The latter\u2019s a private company, and this is another reason to consider the trust. It has the ability to invest in exciting unlisted AI-centric firms with massive growth potential.<\/p>\n

Naturally, given this heavy exposure to the technology, the trust would likely underperform if AI stocks fell out of favour with investors.<\/p>\n

A solid foundation <\/p>\n

I think ASML, TSMC, Salesforce and Scottish Mortgage could provide solid foundations for a portfolio in the age of AI. As such, I reckon some or all of them are worth exploring further.<\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images Many investors will already have lots of exposure to artificial intelligence (AI) in their…\n","protected":false},"author":2,"featured_media":423381,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3163],"tags":[323,1942,2166,16814,2168,2169,2170,2171,2172,2173,2174,53,144655,49736,144656,16,15],"class_list":{"0":"post-423380","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-category-investing","11":"tag-category-us-stock","12":"tag-partner-feeds-dbc-media","13":"tag-partner-feeds-fineco","14":"tag-partner-feeds-flipboard","15":"tag-partner-feeds-msn","16":"tag-partner-feeds-pluto-invest","17":"tag-partner-feeds-sharesight","18":"tag-partner-feeds-yahoo-uk","19":"tag-technology","20":"tag-tickers_global-nasdaq-asml","21":"tag-tickers_global-nyse-crm","22":"tag-tickers_global-nyse-tsm","23":"tag-uk","24":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115202009636343808","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/423380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=423380"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/423380\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/423381"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=423380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=423380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=423380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}