Here’s a 4-stock ISA portfolio to consider for the AI revolution

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

However, for those wanting more targeted exposure to AI, here are four other stocks to consider.

Foundational layer

Let’s start with two tech firms that are absolutely central to the AI revolution. That’s ASML (NASDAQ:ASML) and Taiwan Semi (NYSE:TSM), or TSMC.

ASML‘s the only company in the world that supplies the advanced EUV (extreme ultraviolet) lithography machines needed to make cutting-edge semiconductors. TSMC’s a major buyer of these systems, using them to manufacture AI chips for Nvidia and others.  

Given their foundational importance, you’d be forgiven for thinking these stocks are super expensive. But that’s not really the case, with ASML and TSMC trading on forward price-to-earnings (P/E) ratios of 26 and 22 respectively.

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

As for risks, ASML can’t promise any growth in 2026 due to macroeconomic and geopolitical uncertainties, which are rattling chipmakers. This situation adds uncertainty, though it’s worth noting that analysts see double-digit growth resuming in 2027.

TSMC’s 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.

AI agents

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

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

CEO Marc Benioff commented: “These results reflect the success of our customers — like Pfizer, Marriott, and the US Army — who are transforming into agentic enterprises, where humans and AI agents work side by side to reimagine workflows, accelerate productivity, and deliver customer success.”

While economic uncertainty remains a risk and could slow customer adoption of AI agents, I remain bullish long term. Especially while the stock’s trading quite cheaply.

Footsie trust

Finally, a basket of stocks now in the shape of Scottish Mortgage Investment Trust. The FTSE 100 firm’s portfolio holds many obvious AI names including Nvidia, Meta and Amazon, as well ASML and TSMC.

However, Scottish Mortgage is also invested in AI data platforms Snowflake and Databricks. The latter’s 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.

Naturally, given this heavy exposure to the technology, the trust would likely underperform if AI stocks fell out of favour with investors.

A solid foundation

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.

The post Here’s a 4-stock ISA portfolio to consider for the AI revolution appeared first on The Motley Fool UK.

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Ben McPoland has positions in Nvidia, Salesforce, Scottish Mortgage Investment Trust Plc, and Taiwan Semiconductor Manufacturing. The Motley Fool UK has recommended ASML, Amazon, Meta Platforms, Nvidia, Salesforce, Snowflake, Taiwan Semiconductor Manufacturing, and Tesla. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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