In this article, we will discuss Grok’s Latest Stock Portfolio in 2026: AI Assistant’s Top 10 Stock Picks.
Using AI for picking stocks is trending online. The idea is straightforward: if AI can process long reports, summarize information, and understand complex documents, it should also be able to analyze financial statements and pick stocks. That assumption has fueled a wave of retail traders experimenting with chatbots for investing.
In a study by researchers from Stanford Graduate School of Business and Boston College, AI was applied to a dataset of about 3,300 U.S. actively managed mutual funds covering the period from 1990 to 2020. The model used only public information and made quarterly portfolio adjustments by reweighting holdings and swapping weaker stocks with stronger alternatives. The results were striking: human fund managers generated about $2.8 million in benchmark-adjusted returns per quarter, while the AI-adjusted portfolios generated an additional $17.1 million per quarter.
For this article, we analyzed 10 stock ideas highlighted by the “GrkPortfolio” account on X, which is associated with Autopilot, a platform that lets users automatically copy investment portfolios and stock trades. The account shares stock picks of Grok, which is an AI chatbot developed by Elon Musk’s company xAI.
The stock list is based on publicly available posts from the social media account and is not based on institutional research or verified investment advice. With each stock, we have mentioned potential bull or bear cases based on publicly available analyst opinions and data. 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Sable Offshore (NYSE:SOC)
Number of Hedge Funds: 35
Oil and gas company Sable Offshore (NYSE:SOC) is focused on restarting production from the Santa Ynez offshore oil project in California, where operations were shut down years ago following a major pipeline spill. Bulls believe Sable could benefit from the assets it acquired cheaply from Exxon because the energy giant wanted out of California’s difficult regulatory environment. If production restarts successfully, analysts believe cash flow could rise sharply as the infrastructure is already in place and the field may still contain hundreds of millions of barrels of oil equivalent. However, major risks remain, including California lawsuits, pipeline approval delays, oil price volatility and Sable Offshore ‘s (NYSE:SOC) heavy debt load.
According to the Grok thesis shared by TheGrkportfolio, the core bull case is tied to the restart of the Santa Ynez Unit, which could potentially produce around 50,000 barrels of oil per day if crude prices remain above $100 a barrel.
The thesis also points to a Department of Justice preemption memo as a potential catalyst. This memo says the federal government could use emergency powers under the Defense Production Act to override certain California restrictions that are blocking Sable Offshore’s (NYSE:SOC) restart efforts.
9. MicroStrategy (NASDAQ:MSTR)
Number of Hedge Funds: 41
MicroStrategy (NASDAQ:MSTR) is down 50% over the past year. The stock recently came into the limelight after CEO Michael Saylor indicated potential plans to sell bitcoin to fund dividend payments. That’s a notable shift from his long-standing “never sell” stance on Bitcoin.
But bulls believe MicroStrategy (NASDAQ:MSTR) is a smart leveraged way to gain exposure to Bitcoin and should be in your portfolio if you think the cryptocurrency will rally in the long term. MSTR trades at a premium to the value of its Bitcoin holdings, measured by mNAV. That premium has risen much higher during past Bitcoin bull markets. Because of this, MSTR shares can sometimes move more sharply than Bitcoin in both rallies and declines.
Bulls also argue that, despite volatility, institutional adoption of Bitcoin is increasing. iShares Bitcoin Trust (IBIT) has grown into one of the largest spot Bitcoin ETFs with tens of billions of dollars in assets under management, alongside rising corporate treasury adoption of Bitcoin.
8. Kratos Defense & Security Solutions (NASDAQ:KTOS)
Number of Hedge Funds: 41
A key defense name in Grok’s stock portfolio, Kratos Defense & Security Solutions (NASDAQ: KTOS), makes military drones, missile systems, hypersonic technology, satellite and space communication systems and battlefield training systems. Most of its business comes from the U.S. government and defense agencies.
One of Kratos Defense & Security Solutions’ (NASDAQ:KTOS) best-known products is the XQ-58A Valkyrie, a stealthy military drone designed to fly alongside fighter jets like the F-35 in combat missions.
The bull case for the stock centers on rapid scaling of Valkyrie production and hypersonics amid DoD emphasis on affordable autonomous systems and attritable mass. Kratos Defense & Security Solutions (NASDAQ:KTOS) Q1 revenue rose about 23% year over year amid Valkyrie activity in its Unmanned Systems segment. The company raised FY2026 revenue guidance to $1.70–$1.76 billion, above the Wall Street consensus of $1.68 billion.
Kratos Defense & Security Solutions (NASDAQ:KTOS) ended Q1 2026 with a record $2.01 billion backlog (up from $1.573 billion).
Alger Weatherbie Specialized Fund stated the following regarding Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) in its fourth quarter 2025 investor letter:
“Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is a defense technology company focused on affordable unmanned systems, hypersonics and rocket systems, and satellite command-and-control, which we believe are increasingly aligned with U.S. and allied priorities around rapid fielding and scalable production. Kratos has invested deliberately in parts of the defense supply chain that we believe are increasingly critical to modern warfare and are now reaching an inflection point. Funding is beginning to flow into drone programs, demand for turbojet and turbofan engines is rising across unmanned aircraft and missile systems, and the company’s C5ISR and space businesses continue to grow rapidly. While the company reported strong fiscal third-quarter operating results, shares detracted after management’s fiscal fourth-quarter revenue outlook and free-cash-flow expectations came in below analyst estimates. Sentiment was further pressured by management commentary that cash receipts were being delayed due to the U.S. government shutdown, as well as ongoing cost headwinds tied to certain legacy unmanned contracts, which weighed on confidence in near-term margins and cash conversion.”
7. IREN Limited (NASDAQ:IREN)
Number of Hedge Funds: 46
IREN Limited (NASDAQ:IREN) operates large data centers and makes money by renting out computing power (mainly GPUs) to AI companies and by mining Bitcoin using its own computers and cheap renewable electricity.
Grok says IREN Limited’s (NASDAQ:IREN) core bull thesis revolves around the idea that it is no longer just a Bitcoin miner, but a large-scale AI infrastructure provider backed by massive secured demand and cheap power capacity.
IREN Limited (NASDAQ:IREN) has about 4.5 gigawatts (GW) of renewable energy capacity, which is the backbone needed to run power-hungry AI data centers. The company has a $9.7 billion Microsoft AI cloud contract, which is being framed as effectively covering about 95% of its GPU-related capital expenditure. The implication is that Microsoft (as the demand anchor) helps de-risk the buildout.
6. Lockheed Martin (NYSE:LMT)
Number of Hedge Funds: 59
Wars raging around the world, including the Russia-Ukraine war and the conflict in the Middle East, are pushing nations to raise defense spending, benefiting military companies like Lockheed Martin. Nearly all NATO members except Spain have agreed to increase core defense spending to at least 3.5% of GDP by 2035.
Lockheed has one of the strongest defense backlogs in the industry at roughly $186 billion. The company recently disclosed framework agreements tied to several missile programs, including Advanced Patriot missiles, THAAD missile defense systems and Precision Strike Missiles (PrSMs). The F-35 fighter jet program also remains central to the bull case. The U.S. Air Force and Navy plan to increase F-35 purchases over the next five years, with procurement potentially rising from 38 aircraft in fiscal 2027 to 48 aircraft annually by fiscal 2030 and 2031.
Lockheed Martin (NYSE:LMT) makes THAAD missile defense systems, HIMARS (High Mobility Artillery Rocket Systems) launchers and rockets, PAC-3 MSE interceptors, JASSM and LRASM air-launched missiles, F-35 fighter jets, and other precision munitions and platforms. Demand for these systems is increasing due to ongoing conflicts.
Matrix Asset Advisors stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its third quarter 2025 investor letter:
“Lockheed Martin Corporation (NYSE:LMT) is the largest U.S. defense contractor, supplying advanced military systems to the U.S. Government and allies worldwide. Prior to starting our position, LMT’s stock had underperformed its peer group of defense contractors by a wide margin in 2025 for several reasons. It lost out to Boeing for the next generation of fighter jets and announced an unexpected charge of $1.6 billion on its Aeronautics and Canadian helicopter programs. These charges are a black eye for the company, but we believe LMT’s strong defense programs will allow the shares to rebound when investors gain confidence that the charges are sufficient to address the cost overruns. The company gave investors some reassurance on that score when it recently reiterated its full-year earnings guidance. LMT has a long history of dividend increases and was yielding 3.1% at the time of our original purchase.”
While we acknowledge the potential of LMT 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 LMT and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see Grok’s Latest Stock Portfolio in 2026: AI Assistant’s Top 5 Stock Picks.
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