My Self-Invested Personal Pension (SIPP) has performed incredibly well recently. Over the last two years, it’s more than doubled in value thanks to regular contributions and good performance from my stocks and funds.
Interested to know what my largest individual stock holdings are today? Read on…
The Big Tech stock offering value
My largest stock holding right now is Alphabet (NASDAQ: GOOG), the owner of Google, YouTube, and Waymo.
This stock has come under a fair bit of pressure in recent years due to concerns that AI could hurt its business model (this remains a risk). But I’ve stuck with it. And I’m now seeing the rewards. This year, it has soared about 35% (hitting new all-time highs this week).
It seems investors have realised that Google Search isn’t going away any time soon. They’ve also realised that thanks to its fast-growing cloud computing division and its incredible self-driving car unit, this company still has a lot of growth potential.
Is it too late to consider buying this tech stock? I don’t think so. Currently, it trades on a forward-looking price-to-earnings (P/E) ratio of 24. To my mind, that’s a very reasonable valuation.
Spearheading the AI revolution
My second largest holding is currently Nvidia (NASDAQ: NVDA). It’s the world’s largest artificial intelligence (AI) chip designer (and largest company overall).
This stock’s been a fabulous investment for me. I first bought it for my SIPP in 2022, before ChatGPT was launched. Today, my account is showing a gain of 690% on the stock. No one would complain about that kind of return in three years.
Looking ahead, I see potential for more gains here as the global AI buildout is still in its early days and Nvidia’s chips are in high demand. My medium-term price target is about $250.
That said, I expect the stock to be volatile. If there’s any hint of a slowdown in AI spending, this stock’s likely to experience a pullback (I reckon it’s worth considering on pullbacks).
The highest-quality Mag 7 company
Finally, my third-largest individual stock holding is Microsoft (NASDAQ: MSFT). It’s a technology conglomerate that operates in a range of areas including business productivity software, AI, cloud computing, video gaming, social media, and more.
This company doesn’t get as much attention as most of the other Magnificent 7 stocks. I think that’s a shame. Because, in my view, it’s probably the highest-quality company of the lot. Not only is it highly profitable, but it’s a very reliable performer.
It has certainly been a good investment for me. I first bought in 2019 at around $140 and since then it has risen to around $515.
Today, this stock does look a little expensive (its P/E ratio is about 33). But I still think it’s worth a look.
Competition from other tech giants is a risk, but as a part-owner of OpenAI (the owner of ChatGPT), it appears well positioned for growth. Currently, many Wall Street analysts have price targets of around $650-$675.
