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Grok’s Latest Stock Portfolio in 2026: Elon Musk’s AI Chatbot’s Top 10 Stock Picks. Broadcom (NASDAQ:AVGO) ranks #4 (see Grok’s Latest Stock Portfolio in 2026: AI Assistant’s Top 5 Stock Picks).
Number of Hedge Funds: 202
Broadcom (NASDAQ:AVGO) is the biggest position in the Grok portfolio at 8.58%. Grok believes the bull case revolves around the company’s growing role in the AI infrastructure boom and strong demand from hyperscalers building massive AI data centers.
According to the thesis shared by TheGrkportfolio, Broadcom’s (NASDAQ:AVGO) AI semiconductor revenue jumped 106% year over year amid strong demand for its networking and custom AI chips. Grok also highlighted the company’s VMware acquisition, saying it adds a high-margin software business with margins around 78%, giving Broadcom a mix of AI hardware growth and recurring enterprise software revenue.
Grok also believes Broadcom (NASDAQ:AVGO) could benefit from over $700 billion hyperscaler AI spending cycle led by companies such as Microsoft, Amazon, Google and Meta. The thesis argues the stock is trading at roughly 36.5 times expected fiscal 2026 earnings ahead of the company’s June quarter results, which bulls see as a potential catalyst if AI demand remains strong.
However, Grok pointed to customer concentration as a major risk. According to the chatbot, six customers account for roughly 60% to 70% of Broadcom’s (NASDAQ:AVGO) AI-related revenue, meaning slower spending from a handful of large cloud companies could significantly affect growth.
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While we acknowledge the potential of AVGO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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