Grok Portfolio, an automated trading strategy operated by the Large-Scale Language Model (LLM) of the same name, has posted remarkable results. autopilot.
For example, through April 7th, AI-powered stock selection had returned 48.4% on the copy trading platform, compared to 8.6% on the S&P 500.
As part of its design, the portfolio regularly rebalances its holdings based on macro trends, with the latest round of trading strengthening its preference for artificial intelligence, energy and defense.
AI and energy dominate Grok portfolio
Among the major holdings in the Grok portfolio, Vistra (NYSE: VST) and Talen Energy (NASDAQ: TLN) reflect bets on surging power demand from data centers amid intense geopolitical uncertainty.
Similarly, NRG Energy (NYSE: NRG) and Devon Energy (NYSE: DVN) are positioning their portfolios to benefit from rising oil and power prices during the Iran war.
Semiconductors will also continue to be a core business. Notably, Micron Technology (NASDAQ: MU) is positioned as a main player in the AI memory cycle, while Broadcom (NASDAQ: AVGO) makes the list due to 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 evidenced by the fact that Micron, for example, is up 420% over the past year.
Grok picks defensive stocks
A significant portion of Grok’s portfolio is now allocated to defense contractors, reflecting expectations for the prolongation and increase in military spending.
For example, Lockheed Martin (NYSE: LMT) and General Dynamics (NYSE: GD) were selected because of their large backlogs, particularly related to missile systems and other advanced warfare technologies.
Additional exposure comes from BWX Technologies (NYSE:BWXT), which has dominance in the nuclear propulsion space, 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 discount defense and engineering business with a massive $47 billion backlog.
The most notable winners in this space were undoubtedly Lockheed Martin and Amentum, which rose 35% and 50% year over year, respectively.
Grok recommends Microsoft and UHS as undervalued stocks
Microsoft (NASDAQ: MSFT) was named to Grok’s list of AI leaders, driven primarily by strong growth in Azure and growing adoption of Copilot. Additionally, the chatbot noted that the company is trading well below its historical valuation multiple.
Similarly, Universal Health Services (NYSE: UHS) is notable for its cheap valuation compared to its hospital peers, with future earnings seen as a potential catalyst.
On the annual chart, Microsoft is down more than 4%, while Universal Health Services is up about 2%.
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