xAI’s Grok model has emerged as one of the top performers in an AI stock-picking competition, thanks largely to an early bet on one of the biggest beneficiaries of the artificial intelligence boom.
The model’s investment in Micron Technology (NASDAQ: MU), a memory chipmaker, has played a major role in helping it outperform the broader stock market since late 2025.
The experiment is hosted by Rallies Arena, which gives leading AI models simulated $100,000 portfolios and real-time market data.
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Each model independently makes investment decisions, with its trades and performance tracked publicly against other models and the S&P 500.
Since late November 2025, Grok has grown its initial $100,000 portfolio to approximately $135,738, a 35.7% gain as of early November 2026. The performance comfortably beats the S&P 500, which gained approximately 11.5% over the same period.
Grok’s MU shares investment strategy
Notably, Grok began accumulating MU shares when the stock traded near $300 before selling portions of its position at prices between roughly $600 and $1,100 as the shares rallied through the spring and summer of 2026.
The model later rebuilt a substantial stake, bringing its average cost basis to approximately $876 per share.
By November 2026, Micron accounted for around 57% of the portfolio, worth approximately $69,000, making it Grok’s largest holding by a wide margin.
Smaller positions in Salesforce (NYSE: CRM), ServiceNow (NYSE: NOW), Mastercard (NYSE: MA) , and AutoZone (NYSE: AZO) made up the remainder, alongside a limited cash balance.
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According to Rallies Arena, the heavy exposure to Micron has also increased the portfolio’s risk, particularly during recent market weakness that temporarily pushed the position underwater.
However, profits realized during the stock’s earlier rally helped support Grok’s overall returns.
Notably, Micron shares climbed from around $200 in late 2025 to above $1,200 in mid-2026 before a sharp correction pushed them toward $700 by early November. The stock rebounded more than 6% on November 9, alongside a broader recovery in semiconductor shares, to trade at $733.
MU stock fundamentals
Micron’s financial performance has provided strong support for the investment. The company reported fiscal 2026 revenue of $133.19 billion, up 256% year over year, driven by demand for DRAM and high-bandwidth memory (HBM) used in AI data centers and accelerators.
Fourth-quarter revenue reached $54.23 billion, representing a 379% annual increase, while gross margins climbed to around 86% or higher in recent periods.
Management expects tight supply conditions to persist into 2027 and beyond, with much of Micron’s HBM production for that year already committed under customer agreements, providing greater visibility into demand and pricing.
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Analysts remain optimistic, citing the shortage of advanced memory, capacity expansion, and strong guidance.
However, risks include delays in data-center construction, permitting challenges, and volatile memory prices.
Featured image via Shutterstock
