I’m aiming for a million! Are these the best UK shares to buy now?

Becoming a millionaire with stocks is difficult but not impossible. What are the best UK shares to achieve this? Zaven Boyrazian explores.

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Making a million pounds in the stock market with UK shares is tough. After all, chasing short-term gains with penny stocks is arguably one of the riskiest strategies an investor can pursue. But by extending my time horizon, this challenge becomes more achievable. Let’s explore two UK shares I’d buy now that I believe have the potential to help get my portfolio into the seven-digit range over the next 10+ years.

The best UK robotics share to buy now?

Ocado (LSE:OCDO) is best known for being an online grocery business. Yet management has begun switching strategies, investing heavily in its robotics division. The company has developed a proprietary warehouse automation system, where a fleet of robots autonomously prepares online orders for delivery.

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The bulk of its revenue is still generated through selling groceries via its website. But given time, the robotics division could quickly become the dominant income stream. After all, current forecasts predict the warehouse automation industry will be worth around $30bn (£22bn) by 2026! That’s nearly double today’s market size. And Ocado has so far only captured around 3% of this.

To me, this looks like an exceptional growth opportunity. But there are considerable risks. Other players within this place, such as AutoStore, offer a similar warehouse automation solution. This rising level of competition could undercut the UK share’s growth capabilities, especially if Ocado is unable to keep up with technological innovation.

Nevertheless, I remain cautiously optimistic about Ocado’s future potential, given the success seen so far. And that’s why it’s on my best shares to buy now list.

Making millions from semiconductors

According to Fortune Business Insights, the semiconductor industry is expected to reach a staggering market size of $803bn (£598bn) by 2028. It’s hardly surprising given the explosive demand originating from the automotive and technology industries.

But while there are many ways to invest in this space, XP Power (LSE:XPP) looks like the most promising, in my opinion. The company is a leading provider of electrical components for equipment throughout the industrial engineering, healthcare, and, more excitingly, semiconductor industry. 

As it stands, it has captured around 0.1% of this potential market. Yet looking at the latest annual report, that may soon change because revenue from this division alone has grown by an average of 46% annually over the last five years. And comparing this momentum to more recent performance, it seems this growth rate is accelerating because, in 2020, it jumped to a staggering 86%!

Despite this impressive display, these UK shares only trade at a P/E ratio of 24. To me, that looks cheap.

There are some caveats to be aware of. As with Ocado, the market opportunity hasn’t gone unnoticed. As XP Power ramps up its expansion into China, it’s having to contend with numerous local competitors. Suppose the competition can outmanoeuvre XP Power with their superior knowledge of the culture. In that case, the UK company and its share price could struggle to climb. But, I feel this is a risk worth taking.

Final thoughts

Reaching a million-pound portfolio through these investments will take time, especially if I’m starting from scratch. Many things have to go right for this strategy to work, and therefore success is far from guaranteed. But in my opinion, these two UK shares are the best option for me to achieve this goal.

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Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Ocado Group and XP Power. 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.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

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