In this article, we will take a look at Grok Stock Advice: Top 12 Stock Recommendations.

After a two-year growth of almost 53%, the stock market has been having a wild ride in 2025 so far. The uncertainties surrounding the trade wars have made it a thrilling experience for investors.

READ ALSO: ChatGPT Stock Advice: Top 12 Stock Recommendations.

The U.S. services sector growth unexpectedly slowed in July, as new orders barely shifted and hiring continued to slide. The uncertainty around the Trump administration’s tariff policy continues to impact businesses. On August 4, Wall Street recorded its best session since May 27, following disappointing July jobs data and notable downward revisions to previous months’ higher expectations of a Fed rate cut in September 2025.

The Fed might have a new chair soon. In an interview with CNBC, President Trump stated that he would soon announce his pick for an open seat on the Fed’s Board of Governors and his potential nominee for Fed Chair.

“You can announce who the next chair is, but I don’t think that Chair Powell will be going anywhere until the end of his term. I also don’t think that whoever is announced as the new Fed chair will really be impactful,” said Art Hogan, chief market strategist at B Riley Wealth.

According to the World Economic Forum, employing AI across the investment lifecycle can transform how financial firms make, control, and optimize investments. “Only 2% of private equity firms expect to realize significant AI-driven value in 2025, but 93% anticipate moderate to substantial benefits within three to five years according to a new research, WEF mentioned in a blog post.

The use of Gen AI tools such as Grok AI and ChatGPT for being effective in stock recommendations remains a debate. However, they can be utilized for financial education and researching companies that investors want to invest in.

With that said, let’s now head over to Grok’s top 12 stock recommendations.

Our Methodology

For the list, we prompted Grok AI to recommend the top 12 stocks based on its assessment of historical trends and the current market situation. The stocks are ranked in this article in the same order as provided by Grok AI. The platform said it based its rankings on several factors, including long-term past performance, innovation capacity, economic resilience, and current macroeconomic trends.

Grok’s Response to Our Prompt: Below, I’ve curated a list of 12 stocks that stand out based on these criteria, drawing from recent market analyses and trends observed in 2025. The selection process considers companies with strong historical returns, leadership in innovative sectors (e.g., AI, automation, and healthcare), resilience to economic volatility (e.g., tariff uncertainties and inflation), and alignment with macroeconomic trends such as digital transformation and consumer spending shifts. I’ve ensured diversification across sectors to mitigate risk, as growth stocks can be volatile, and macroeconomic uncertainties like tariffs and interest rate policies remain pivotal in 2025.

For perspective, we have also mentioned the number of hedge funds holding stakes in these stocks, and the data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q1 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Grok Stock Advice: Top 12 Stock Recommendations

12. Becton, Dickinson and Company (NYSE:BDX)

Number of Hedge Fund Holders: 54

Becton, Dickinson and Company (NYSE:BDX) is one of the top stocks that Grok recommended. On July 31, Becton, Dickinson and Company (NYSE:BDX) announced that it submitted an application to the U.S. FDA for a new, at-home HPV test.

The new HPV test focuses on patients to self-collect a sample at their home using a swab, the size of a Q-tip, simplifying lab processing. According to BD, this method also reports more high-risk strains of HPV compared to other tests on the market today.

“We envision a world where women are empowered with access and a choice for their HPV screening, whether it be in a routine visit at the doctor’s office or the comfort and privacy of their own home via a self-collected sample. Cervical cancer and the loss of more than 4,000 women per year to this devastating disease is preventable, and we believe at-home testing is an important leap forward to our goal of eliminating this type of cancer,”  said Nikos Pavlidis, president of BD Diagnostic Solutions.

BD’s new HPV test will include a state-of-the-art self-collection swab technology that also offers convenient mailing from home to the lab, supporting broader participation in cervical cancer screening programs. The self-collected swab requires no manual sample preparation by clinical laboratory technologists. This process will allow them to focus on higher-value work.

Becton, Dickinson and Company (NYSE:BDX) is a global medical technology company that focuses on the development, manufacturing, and sale of various medical supplies, devices, diagnostic products, and laboratory equipment.

11. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 108

MercadoLibre, Inc. (NASDAQ:MELI) is one of the top stocks that Grok recommended. On July 23, Barclays lowered the price target on MercadoLibre, Inc. (NASDAQ:MELI) stock from $3,100 to $3,000, keeping its Overweight rating.

Trevor Young from Barclays reduced his price target on MELI as part of a Q2 2025 preview for the e-commerce group. On August 4, the company posted its Q2 results, with earnings of $10.31, missing estimates by 12.24%. The increased free shipping in Brazil drove sales up, but impacted the margins. MercadoLibre reported $523 million of net income, down by 1.5% year-over-year and below the consensus of $596 million. After reducing shipping costs for companies and users selling on its platform in May 2025, the company cut the threshold for purchases eligible for free shipping in Brazil in early June. This was driven mainly by fierce competition in the country’s e-commerce segment.

“We don’t want to miss the growth opportunities ahead of us. That might generate some short-term margin pressure, but we are very optimistic about the long-term trajectory of our profitability,” said CFO Martin de los Santos in an interview.

Young believes that discretionary spending is holding up, but expects some risks in the second half of the year, impacted by tariffs.

MercadoLibre, Inc. (NASDAQ:MELI) is a Uruguay-based e-commerce business facilitator of Argentinian origins. The company’s products serve retail and wholesale through Internet platforms to offer users a portfolio of services to support commercial transactions.

10. Fortinet, Inc. (NASDAQ:FTNT)

Number of Hedge Fund Holders: 62

Fortinet, Inc. (NASDAQ:FTNT) is one of the top stocks that Grok recommended. On July 30, Fortinet, Inc. (NASDAQ:FTNT) reported that its Fabric-Ready Technology Alliance Partner Program has exceeded 3,000 integrations.

The Alliance Partner Program achievement reinforces the openness and collaborative power of Fortinet Security Fabric. Surpassing 3,000 integrations across more than 400 technology partners enables the company to allow customers to seamlessly enhance security across complex, multivendor spaces while covering digital transformation challenges.

“Fortinet’s Open Ecosystem is among the largest in the cybersecurity industry, enabling customers to integrate the Fortinet Security Fabric with their existing and future technologies,” said Neil Prasad, Vice President and Head of Global Technology Alliances at Fortinet. “With more than 3,000 integrations, we are helping organizations strengthen their overall security postures, improve the effectiveness of their security operations, and accelerate their digital journey with confidence.”

By delivering over 3,000 pre-validated integrations, Fortinet’s Open Ecosystem addresses complexities such as visibility and centralized management challenges for organizations. These integrations cover automation, cloud, security operations, virtualization, IoT, OT, endpoint security, and networking. The Open Ecosystem solution empowers organizations with broad visibility, improved security, and simplified operations.

Fortinet, Inc. (NASDAQ:FTNT) is engaged in cybersecurity, driving the convergence of networking and security. The company’s integrated platform, Fortinet Security Fabric, offers secure networking, AI-driven security operations, and unified Secure Access Service Edge (SASE).

9. The Clorox Company (NYSE:CLX)

Number of Hedge Fund Holders: 53

The Clorox Company (NYSE:CLX) is one of the top stocks that Grok recommended. On August 1, J.P. Morgan lowered its price target on The Clorox Company (NYSE:CLX) from $140 to $133, keeping its Hold rating on the stock.

Andrea Faria Teixeira from J.P. Morgan reduced the price target on CLX following Q4 FY2025 results. The company posted adjusted earnings per share of $2.87, exceeding estimates by $0.66 per share. The revenue reached almost $2 billion, surpassing the estimated $1.94 billion. The sales were mainly driven by the increased ERP shipments.

Teixeira slightly lowered the price target on CLX as the company suffered challenges from the divestiture of its Better Health Vitamins, Minerals, and Supplements business and an unfavourable price mix. The analyst holds the rating while remaining cautious as the company anticipates a transitory impact on sales and earnings in FY2026 due to the ERP system transition. Clorox projects earnings per share between $5.95-$6.30 in FY2026, which is just in line with the average consensus estimate of $6.20.

The Clorox Company (NYSE:CLX) is a multinational manufacturer and marketer of consumer and professional products. The company operates through four segments, including Health and Wellness, Household, Lifestyle, and International.

8. Rockwell Automation, Inc. (NYSE:ROK)

Number of Hedge Fund Holders: 46

Rockwell Automation, Inc. (NYSE:ROK) is one of the top stocks that Grok recommended. On July 17, Rockwell Automation, Inc. (NYSE:ROK) announced it has been selected by Acculon Energy to deliver next-generation battery energy storage solutions.

Rockwell, in collaboration with its partner Circulor, will deliver the battery energy storage solutions to the U.S. manufacturer. Acculon will use Rockwell’s digital transformation expertise and Circulor’s traceability solution to track the origin and journey of key materials throughout the battery lifecycle. The battery energy storage solutions will be deployed at Acculon’s facility in Ohio.

“Rockwell Automation is proud to support innovative manufacturers like Acculon Energy as they embrace digital transformation. By connecting intelligent manufacturing systems with trusted traceability data, we’re helping Acculon scale with confidence and compliance in mind,” said James Glasson, vice president, Rockwell Automation.

The combined battery energy storage solutions of Rockwell and Circulor will assist Acculon Energy in delivering meaningful benefits for consumers of energy storage products. This will provide direction to Acculon in the increasingly complex market expectations. Rockwell and Circulor will create a new benchmark for supply chain integrity and sustainability in the battery energy storage industry.

Rockwell Automation, Inc. (NYSE:ROK) is focused on industrial automation and digital transformation. The company operates in three segments: Intelligent Devices, Software & Control, and Lifecycle Services.

7. Constellation Brands, Inc. (NYSE:STZ)

Number of Hedge Fund Holders: 44

Constellation Brands, Inc. (NYSE:STZ) is one of the top stocks that Grok recommended. On July 29, Bernstein reiterated an Outperform rating on Constellation Brands, Inc. (NYSE:STZ) stock, keeping its price target at $225.

Bernstein analyst Nadine Sarwat retains her stance on STZ following the Q1 FY 2026 earnings release. The company posted beer depletions of almost 2.6% from a year ago, which the analyst noted was slightly better than expected and in line with consensus estimates. Despite challenging market conditions, Constellation Brands maintains its beer business FY 2026 outlook of net sales to grow 0-3% and operating income to increase 0-2%.

Sarwat mentioned that the company modestly missed profit expectations due to increased marketing investments. The company maintains its comparable EPS FY 2026 outlook of $12.60-$12.90, which Sarwat views as a positive sign amid the current market headwinds.

Constellation Brands, Inc. (NYSE:STZ) is a producer of beer, wine, and spirits with brands such as Corona, Extra, and Modelo Especial, among others.

6. Root, Inc. (NASDAQ:ROOT)

Number of Hedge Fund Holders: 23

Root, Inc. (NASDAQ:ROOT) is one of the top stocks that Grok recommended. On July 10, Wells Fargo downgraded the price target on Root, Inc. (NASDAQ:ROOT) from $142 to $118, maintaining its Equal Weight rating on the stock.

Elyse Greenspan from Wells Fargo lowered ROOT’s price target ahead of the company’s Q2 2025 results scheduled on August 6. Wall Street expects the company to post earnings per share of $0.22 and revenue of around $338.35 million. The company had a notable Q1 with partnership expansions, launching new strategic collaborations with Hyundai Capital America and Experian.

Greenspan mentioned that Root’s focus should be on pricing, loss trend, and reserves for P&C companies, organic and margin for brokers, and sales for life companies. The company also expects higher loss ratios in Q2 and Q3 due to seasonal factors such as convective storms and the hurricane season.

Root, Inc. (NASDAQ:ROOT) is a technology insurance company that offers direct-to-customer insurance products. It provides auto and renters insurance products underwritten by Root Insurance Company and Root Property & Casualty.

5. AST SpaceMobile, Inc. (NASDAQ:ASTS)

Number of Hedge Fund Holders: 22

AST SpaceMobile, Inc. (NASDAQ:ASTS) is one of the top stocks that Grok recommended. On August 1, B. Riley increased the price target on AST SpaceMobile, Inc. (NASDAQ:ASTS) stock from $44 to $60, keeping its Buy rating.

Mike Crawford from B. Riley raised the price target on ASTS following the company’s announcement of a note offering. On July 30, AST SpaceMobile announced the closing of $575 million aggregate principal amount of notes due 2032. This financing strengthens AST’s resources above $1.5 billion in cash, positioning the company to scale the deployment of the world’s first and only space-based cellular broadband network.

The analyst sees financial flexibility for AST post the note offering. Crawford also mentioned that the company will gain access to valuable 45 MHz of lower mid-band spectrum controlled by Ligado and Viasat subsidiary Inmarsat.

AST SpaceMobile, Inc. (NASDAQ:ASTS) builds a global cellular broadband network in space to operate directly with standard, unmodified mobile devices. The network is based on AST’s intellectual property and patent portfolio and is designed for commercial and government applications.

4. Shopify Inc. (NASDAQ:SHOP)

Number of Hedge Fund Holders: 77

Shopify Inc. (NASDAQ:SHOP) is one of the top stocks that Grok recommended. On July 31, FST Corp. revealed that it has initiated the rollout of Shopify Plus.

Shopify Plus is a scalable SaaS e-commerce platform that assists large businesses to automate operations, expand into new markets, and streamline work.

“We are very excited to join the Shopify Plus Platform. This move, we believe, will help streamline our operations and reduce operating expenses, especially those relating to marketing and customer service,” said FST chief executive David Chuang.

Shopify Plus will help FST with its multiple automation, tracking, and analytics features to design, test, produce, and sell products swiftly. FST will be able to utilize these services rather than manually analyzing an ever-increasing assortment of administrative and customer data. Among many other features, Shopify Plus will enable direct sales for FST through social media posts. This will allow FST to monetize increased attention better after golf tournament wins.

Shopify Inc. (NASDAQ:SHOP) is a Canada-based global commerce services firm. The company offers key Internet infrastructure for commerce, providing tools to start, grow, market, and manage a retail business of any size.

3. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 76

Robinhood Markets, Inc. (NASDAQ:HOOD) is one of the top stocks that Grok recommended. On August 1, Mizuho raised the price target on Robinhood Markets, Inc. (NASDAQ:HOOD) from $99 to $120, maintaining its Outperform rating on the stock.

Mizuho analyst Dan Dolev increased the price target of HOOD following record Q2 2025 results. The company posted revenue of around $989 million, up by 45% year-over-year and exceeding estimates by $75.67 million. The sales were driven by robust business growth and higher trading volumes. Robinhood achieved a record number of net deposits, making it the third highest quarter ever, with more than $10 billion in net deposits for the sixth consecutive quarter. Moreover, the Bitstamp acquisition will now expand Robinhood’s institutional business, contributing to its global financial network.

Dolev sees this big quarter and accelerating year-over-year growth to be great news for the company. The analyst sees Robinhood’s focus on asset tokenization and expanding into lending as “particularly interesting.”

2. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 77

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the top stocks that Grok recommended. On August 5, BofA raised the price target on Palantir Technologies Inc. (NASDAQ:PLTR) stock from $150 to $180, keeping its Buy rating.

Mariana Perez Mora from BofA increased the price target on PLTR following record quarterly revenue. During Q2 2025, the company achieved a record-breaking $1 billion in revenue, reflecting a 48% year-over-year growth. Mora sees Palantir “approaching its own ‘singularity’ moment this quarter,” after reaching $1 billion in quarterly revenue. Palantir’s U.S. commercial sector boosted with a 93% year-over-year revenue growth, massively outpacing the U.S. government revenue growth of 53%.

The analyst believes that the U.S. customer count growth of 64% year-over-year, with almost a 10% increase in headcount, is a soothing concern. This indicates that growth is capped, and new customer growth will continue. Mora mentioned that Palantir remains the best in class for deploying and operationalizing AI into enterprises, giving it a major edge for continued growth.

Palantir Technologies Inc. (NASDAQ:PLTR) is engaged in building and deploying software to help in counterterrorism investigations and operations.

1. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 212

NVIDIA Corporation (NASDAQ:NVDA) is one of the top stocks that Grok recommended. On July 30, Morgan Stanley upgraded the price target on NVIDIA Corporation (NASDAQ:NVDA) from $170 to $200, keeping its Overweight rating on the stock.

Joseph Moore from Morgan Stanley reiterated his rating on NVDA with a price increase as the analyst sees further gains in the coming months, driven by the AI strength, as the supply and demand continue to soar. Moore mentioned that the planned Blackwell ramp for both processors and connectivity in the second half of 2025 will fuel the next phase of growth for Nvidia.

Moore’s bullish call arrives ahead of Nvidia’s earnings release scheduled on August 27. Wall Street expects NVDA to post earnings per share of $1 and quarterly revenue of around $45.68 billion. The analyst believes that the supply bottlenecks will continue to set the pace for growth and accelerate the momentum for earnings revisions.

NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company. The company is leading the AI revolution with accelerated computing to help solve the challenging computational problems.

While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.

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