Broadcom is the largest holding in Grok AI's portfolio at 8.58%, with AI semiconductor revenue up 106% year over year

Broadcom (NASDAQ:AVGO) holds the biggest position in Grok's stock portfolio at 8.58%. The chatbot's investment thesis centers on the company's role in AI infrastructure and demand from hyperscalers building large AI data centers.

Broadcom's AI semiconductor revenue jumped 106% year over year, driven by strong demand for its networking and custom AI chips. The company's VMware acquisition adds a high-margin software business with margins around 78%, combining AI hardware growth with recurring enterprise software revenue.

Grok identified customer concentration as a major risk: six customers account for roughly 60% to 70% of Broadcom's AI-related revenue, meaning slower spending from a handful of large cloud companies could significantly affect growth.