The Grok Portfolio, an automated trading strategy operated by the large language model (LLM) of the same name, is posting noteworthy results on Autopilot.
For instance, by April 7, the AI-driven stock selection had delivered a 48.4% return on the copy-trading platform, versus 8.6% for the S&P 500.
As part of its design, the portfolio periodically rebalances its holdings based on macro trends, with the most recent round of trades reinforcing its preference for artificial intelligence, energy, and defense.
AI and energy dominate the Grok Portfolio
Among the Grok Portfolio’s top holdings, Vistra (NYSE: VST) and Talen Energy (NASDAQ: TLN) reflect a bet on surging electricity demand from data centers amid intense geopolitical uncertainty.
Similarly, NRG Energy (NYSE: NRG) and Devon Energy (NYSE: DVN) position the portfolio to benefit from rising oil and power prices during the war in Iran.
Semiconductors remain another core pillar. Notably, Micron Technology (NASDAQ: MU) is framed as a central player in the AI memory cycle, while Broadcom (NASDAQ: AVGO) makes the list for its triple-digit AI revenue growth and a newly announced long-term supply agreement with Google.
The profitability of some of the stocks on this list is evident in, for instance, Micron’s 420% rally over the past year.
Grok picks defense stocks
A sizable portion of the Grok portfolio is currently allocated to defense contractors, reflecting expectations of prolonged and heightened military spending.
Lockheed Martin (NYSE: LMT) and General Dynamics (NYSE: GD), for example, were selected due to large order backlogs, particularly tied to missile systems and other advanced warfare technology.
Additional exposure comes through BWX Technologies (NYSE: BWXT) thanks to its dominance in nuclear propulsion, as well as Parsons Corporation (FRA: PSN) and KBR (FRA: KBR), which have ties to the defense sector.
Meanwhile, Amentum Holdings (NYSE: AMTM) is positioned as a discounted defense and engineering play with a sizable $47B backlog.
The most notable winners in this sector are undoubtedly Lockheed Martin and Amentum, which are up 35% and 50% on the year, respectively.
Grok recommends Microsoft and UHS as undervalued stocks
Microsoft (NASDAQ: MSFT) made Grok’s list as a leader in AI, supported primarily by strong Azure growth and expanding Copilot adoption. In addition, the chatbot noted that the company is trading well below historical valuation multiples.
Similarly, Universal Health Services (NYSE: UHS) was highlighted for its discounted valuation relative to hospital peers, with upcoming earnings seen as a potential catalyst.
On the yearly chart, Microsoft is down more than 4%, while Universal Health Services has gained approximately 2%.
Featured image via Shutterstock
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