Investors can gain exposure to the sector by considering these growth stocks. Let’s take a closer look at them.

Salesforce

Salesforce (NYSE:CRM) is a key player in the agentic AI space, integrating autonomous capabilities into its Einstein platform. Einstein’s evolving to handle not just predictive analytics but also agentic tasks.

This means managing customer journeys, automating sales processes, and orchestrating cross-platform workflows with little human oversight. With its existing leadership in enterprise software, it could be in prime position to dominate agentic AI.

On valuation, Salesforce trades at a forward price-to-earnings (P/E) ratio of 23.8 for 2026, falling to 21 in 2027 and 18.3 in 2028, as consensus expects steady double-digit earnings growth.

These P/E multiples are above the technology sector median of 19.6 and the software industry average of 22.9. However, they’re trending lower over time as earnings catch up with the share price. 

The price-to-earnings-to-growth (PEG) ratio is 1.36, which is below the sector average of 1.8 and well below Salesforce’s own five-year median of 1.43, suggesting improved value relative to its growth outlook. 

Salesforce’s net debt position’s also strong, with $17.4bn in cash versus $12bn in total debt, leaving the company with net cash and ample flexibility for further AI investment.

Risks? There are always risks. Failing to capitalise on agentic AI may mean losing its strong position in enterprise software.

UiPath

UiPath (NYSE:PATH) is another major agentic AI contender, focusing on robotic process automation (RPA) that is becoming increasingly autonomous. Its latest platform empowers software robots to make decisions, learn from outcomes, and adapt their behaviour. These are the hallmarks of agentic AI.

UiPath’s forward P/E ratio is 24.1 for 2026, dropping to 20.9 in 2027 and 19.9 in 2028. These figures are slightly above the sector median but below UiPath’s own long-term average, reflecting a moderation in growth expectations. 

The PEG ratio’s 2.76, higher than the sector average. Sadly, this suggests the stock’s expected growth isn’t enough to offset its premium price point. Of course, the company’s earnings could surprise us, but this is fairly off-putting for me.

Net debt’s not an issue, with $1.56bn in cash and just $79m in total debt, giving the company a strong balance sheet for ongoing development. UiPath’s a fraction of the size of Salesforce and this net cash position equates to around 20% of the market-cap.

For me, the issue is purely the valuation. It might be worth considering in the long run, but personally my preference is Salesforce. In fact, I’ve actually added it to my portfolio.

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However, Monday (27 January) was almost certainly the worst day for my portfolio ever. The £15,000 drop in the value of my investments was not an insubstantial part of my total. However, as always, I should look to learn from these events. Here are my key takeaways.

A grey swan event

We can’t plan for every eventuality. And on Monday, artificial intelligence (AI)-related stocks tanked because a Chinese company’s language model, reportedly produced for just $5.6m, became the most downloaded chatbot on the App Store.

DeepSeek hadn’t been on investors’ bingo list for 2025. But just one month into the year, it’s got people questioning the dominance of US tech and asking how much money is really needed to develop AI. However, although DeepSeek ranked higher than many of its Western chatbot peers, some questions remain about the validity of the development claims.

While the headlines focused in on Nvidia, which fell more than 10% in Monday’s trading, some of my AI infrastructure holdings fell further. Celestica and Credo both fell around 30%, while Modine Manufacturing and Powell Industries weren’t far behind.

A lapse in diversification

I have 25 stocks in my portfolio, but my error was that I allowed some to grow too large, creating concentration risk. I recently sold most of my AppLovin shares, which were up 800%, but I didn’t practice the same caution with Celestica, Modine, or Powell. All three were up over 200% in my portfolio, growing faster than most of my other stocks.

As a result, almost 20% of my portfolio focused on AI infrastructure. It’s an important reminder than diversification requires constant asset adjustment to avoid concentration risk.

Achieving diversification

Celestica stock has surged back from Monday though, and I partially expect the others to do the same. However, in the spirit of diversification, I could consider a stock for the ‘second layer’ of AI. UiPath (NYSE:PATH) is one such company, and it’s been on my watchlist for a while. It’s the second layer of AI because it’s one of the companies that is using technological developments to provide platforms to help business automate and optimise processes.

From a valuation perspective, it’s trading with a price-to-earnings-to-growth (PEG) ratio of 0.99, which represents a 46% discount to the information technology sector average. However, at 32 times forward earnings, there’s a certain degree of risk here and anything less than a stunning performance could be an issue. For now, it’s a stock I plan to keep a close eye on. Maybe I would have been wise to move a little earlier when the stock traded with lower multiples.

However, for even greater diversification, I may wish to consider an ETF or a fund-based approach. This can provide me with exposure to a host of companies typically with lower risk than investing in a singular stock.

The post I lost £15k on tech stocks on 1 day: here are my key takeaways appeared first on The Motley Fool UK.

(Editor’s note: you might have correctly guessed that the above paragraph was mostly written using AI. What follows, however, are our contractors’ own words!)

Kainos

What it does: Kainos is a software company based in Belfast providing digital technology solutions and workday deployments.

By Matthew Dumigan. The UK stock market is home to a handful of companies that look poised to cash in on the AI revolution, but my top pick at the moment is Kainos (LSE:KNOS).

The company’s aim is to help organisations increase the efficiency of their operations, which it does by leveraging a range of AI-driven techniques such as machine learning, natural language processing and knowledge mining.

Kainos has now delivered AI solutions to hundreds of global customers, citing its excellent customer service as a key driver of customer satisfaction and retention, which has subsequently underpinned revenue growth.

However, the tech company comes with a high price-to-earnings (P/E) ratio of around 30, which adds risk since it means the stock is relatively expensive at its present valuation.

Despite this, I’m confident the company can continue to deliver transformation programmes to new and existing clients across a range of sectors amid a backdrop of sustained market demand. For me, this justifies an elevated P/E ratio.

Matthew Dumigan does not own shares in Kainos.

Microsoft

What it does: Microsoft develops and licenses consumer and enterprise software.

By Harvey Jones: Artificial intelligence is the most thrilling investment theme of 2023 with stocks like chip maker Nvidia and AI developer C3.ai tripling in value, but that makes me nervous.

While I recognise that AI and machine learning will change our world, I think we’re coming to the end of the early-stage excitement and it’s all looking a bit frothy.

So I hate to be boring and say my preferred way to invest in AI is via tech old-timer Microsoft (NASDAQ:MSFT)

Except it’s not boring. 

Microsoft’s natural language processing chatbot ChatGPT is now the fastest-growing app ever, according to UBS. I’ve tried it and agree with Elon Musk’s verdict that it’s “scary good”.

There are no doubt a host of start-ups doing brilliant things, but at some point they will have to hook up with a tech titan to achieve size and scale, and Microsoft will be waiting for them. 

I’m happy to see that its share price hasn’t doubled this year. So far, it’s up a relatively modest 35% at the time of writing. Over one year, it’s up 20%.

Microsoft has defensive strength, as well as growth potential. I should have bought the stock years ago. AI has given me a new reason to do so.

I have a couple of concerns, though. First, after the recent AI frenzy, the sector (and Microsoft shares) may slip back. Second, if the US dips into recession as some fear, that may hit the US dollar and the value of my holding (and its dividends) in real terms. I’m keen to buy Microsoft but I’d rather do it following a market dip.

.Harvey Jones has no position in Microsoft, Nvidia or C3 ai.

Microsoft

What it does: Microsoft is a technology company that produces software including Windows and Microsoft Office as well as hardware such as Xbox.

By Christopher Ruane. When the internet came along in a big way, doomsayers reckoned that Microsoft (NASDAQ: MSFT) would struggle to stay relevant.

In fact, the commercially savvy company figured out over time how to turn the internet from a threat to an opportunity. I think it will do the same with AI.

Its large, profitable base business gives it financial firepower startup AI rivals lack. A large skilled workforce and commercial experience can help Microsoft turn a technology into a multibillion dollar business. Many smaller rivals would struggle to do that no matter how strong their grasp of AI is.

The firm has had problems with regulators before and there is a risk they could slow it growing its AI offering too fast. But I think the company is one of the very few that combine technological prowess with proven commercial nous on the right scale to bring AI to the mass market.

Christopher Ruane does not own shares in Microsoft.

Nvidia

What it does: Nvidia is a developer of high-powered accelerated computing hardware.

By Edward Sheldon, CFA. It’s hard to look past Nvidia (NASDAQ:NVDA) when it comes to AI stocks, to my mind. The way I see it, this company is powering the artificial intelligence revolution.

The thing to understand about AI is that it requires an immense amount of computing power. It can’t be done properly with old-school computer chips. Instead, it needs ‘accelerated computing’ hardware. This is where Nvidia comes in. It offers high-powered computing products designed specifically for AI applications.

Today, Nvidia’s chips are used by nearly all of the major players in the artificial intelligence industry including Google, Microsoft, Meta Platforms, and ChatGPT creator OpenAI. Currently, it has a market share of around 80%. This means that the stock is essentially a great ‘picks-and-shovels’ play on the growth story. No matter who wins the AI race, Nvidia should do well.

It’s worth pointing out that this is a higher-risk stock. Historically, it has been very volatile. I’m comfortable with the volatility here, however, as I’m invested for the long term.

Edward Sheldon owns shares in Nvidia and Microsoft

UiPath

What it does: Romanian-founded, US-listed UiPath specialises in robotic process automation software.

By Dr James Fox. I’m a little concerned investors will be taking their profits after AI stocks soared in recent weeks. That’s why I’m looking at an overlooked AI stock – one that didn’t experience the Nvidia-powered surge.

That’s why my top pick is UiPath (NYSE:PATH). The company creates software robots that help businesses automate manual tasks, notably providing the tech to automate routine office activities and enhance productivity.

It recently rolled out an Open AI connector, allowing businesses to tap into programmes like ChatGPT, Amazon’s machine-learning platform Sagemaker, and Clipboard AI for automated form filling and data mining.

Naturally, these features nicely compliment UiPath’s core business offering – productivity gains.

There’s certainly a risk that if the AI bubble – if it is a bubble – bursts, it could drag UiPath shares down. But I believe the long-term future for this stock is bright. It’s also much cheaper than AI-leaders Nvidia and C3 ai, trading at nine times sales.

Dr James Fox does not own shares in UiPath, Nvidia, Amazon or C3 ai.

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