18% of my ISA and SIPP is invested in these 3 magnificent stocks

Within my ISA and SIPP, I hold a lot of different stocks and funds. However, at present, three stocks – all of which I’m very bullish on – account for around 18% of my total investment portfolio.

Interested to know what stocks they are? Read on and I’ll tell you…

A world-class company

First up we, have technology powerhouse Microsoft (NASDAQ: MSFT), which is currently my third-largest individual stock holding.

This company’s been a great investment for me. Since I first invested in it back in 2019, its share price has risen from $150 to around $400. I think there are plenty more gains to come from the stock however.

Despite being a near-$3trn company today, Microsoft’s still growing at a rapid rate (17% revenue growth last quarter).

And with the exposure to cloud computing and artificial intelligence (AI), I think the group could continue growing at a healthy rate for the next decade as these industries expand.

It’s worth pointing out that the company’s valuation is quite high. So there’s a risk of a share price pullback in the near term, especially if sentiment towards tech stocks cools.

If it was to pull back however, I would most likely top up my holding. To my mind, this company is truly world-class.

Spectacular earnings growth

Next we have Amazon (NASDAQ: AMZN), which is currently my second-largest stock holding.

Now this stock’s had a brilliant run recently. Over the last year, it’s risen about 75%.

I reckon it can keep rising. One reason I say this is that profits are soaring. This year, analysts expect earnings per share growth of a huge 51%.

Another is that, relative to its earnings growth, Amazon’s valuation isn’t that high. Currently, its price-to-earnings-to-growth (PEG) ratio is less than one, which suggests the company’s cheap.

Like Microsoft, Amazon has plenty of exposure to the fast-growing cloud computing and AI industries. So there’s a lot of long-term growth potential.

That said, there are risks to be aware of here. For example, in the years ahead, Amazon’s e-commerce business could come under pressure from Chinese rivals such as Temu.

Multiple long-term growth drivers

Finally, we have Google and YouTube owner Alphabet (NASDAQ: GOOG), which is, you guessed it, my largest individual stock holding right now.

Alphabet’s had a few doubters recently. A lot of investors have been concerned that ChatGPT could disrupt its business model.

However, recent Q1 results showed that the Big Tech company’s doing really well at the moment. For the quarter, Google search revenues were up 14% year on year while YouTube ad revenues were up 21%.

So I’m glad I didn’t get spooked by all the negative sentiment and sell.

Looking ahead, I reckon this stock still has a lot of long-term potential. I’m excited about YouTube’s growth potential as well as the company’s AI innovations (including its self-driving cars).

Of course, ChatGPT and other large language models (LLMs) do remain a risk. However, with the stock currently trading on a P/E ratio of just 22, I like the risk/reward skew.