10 High Profit Margin Stocks to Buy Now

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1. Microsoft Corporation (NASDAQ:MSFT)

TTM Net Profit Margin: 35.79%

Number of Hedge Fund Holders: 284

Microsoft Corporation (NASDAQ:MSFT) is one of the high profit margin stocks to buy now. On June 30, Microsoft announced an advancement in medical AI, revealing a new AI system called the MAI Diagnostic Orchestrator/MAI-DxO. According to Mustafa Suleyman, the CEO of Microsoft’s AI arm, this tool can diagnose diseases 4x more accurately and at a lower cost than a panel of human physicians.

The MAI-DxO system was tested using a Sequential Diagnosis Benchmark, comprising 304 diagnostically complex case studies sourced from the New England Journal of Medicine. The system works by mimicking a doctor’s step-by-step diagnostic process, querying several leading AI models such as OpenAI’s GPT (specifically the o3 model), Google’s Gemini, Anthropic’s Claude, Meta’s Llama, and xAI’s Grok. This chain-of-debate orchestration mechanism allows multiple AI agents to work collaboratively, emulating a virtual panel of physicians.

In the experiment, MAI-DxO achieved an accuracy of 80% (specifically 85.5% with the o3 model), while a group of 21 practicing physicians from the US and UK who worked without external resources achieved a mean accuracy of 20% on the same complex cases. Furthermore, the AI system reduced costs by ~20% by efficiently selecting less expensive tests and procedures.

Microsoft Corporation (NASDAQ:MSFT) develops and supports software, services, devices, and solutions worldwide.

While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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