In this piece, we discuss the 10 Most Profitable Blue Chip Stocks to Buy According to Hedge Funds.
Strong U.S. corporate earnings have driven the stock market’s record run, a backdrop that makes blue chip profitability especially relevant right now.
In a report dated May 6, 2026, Reuters said that, more than two-thirds through the first-quarter reporting season at that time, S&P 500 companies were on track for their strongest quarterly earnings growth in more than four years, with earnings expected to have jumped 28.2% from a year earlier, the highest pace since the fourth quarter of 2021. Analysts’ estimates for future 12-month U.S. earnings had risen by over 10% since the start of the year, according to LSEG Datastream, and full-year 2026 earnings were projected to climb 22.6%.
Massive AI-related spending remained a central driver. Five AI hyperscalers were expected to spend $751 billion on capital expenditures in 2026, according to Goldman Sachs, and companies benefiting from AI investment saw first-quarter earnings rise 50%, Deutsche Bank said.
On June 3, 2026, Reuters added that this AI-driven rally has left broader indexes more dependent on technology than ever. The S&P 500 technology sector now makes up more than 39% of the index’s market capitalization, its highest on record and above the level reached during the 2000 Internet bubble, with the tech sector now accounting for more than a quarter of trailing 12-month net income among S&P 500 members.
With that context in mind, we will now jump to our list of the most profitable blue chip stocks hedge funds are buying.
Our Methodology
To curate our list for this article, we used screeners to identify stocks with a net income (profit) margin exceeding 30%, then narrowed the list to companies that have consistently delivered strong profitability over the past decade. We further limited the list to companies with market capitalizations above $100 billion, excluding smaller companies despite their potentially higher profit margins.
Finally, we ensured that the selected stocks have meaningful popularity among elite hedge funds. For that, we relied on Insider Monkey’s hedge fund database, which tracks over 1,000 hedge funds as of Q1 2026. Our final list is ranked in ascending order based on the number of hedge funds holding bullish positions in each stock.
Note: All data sourced on June 10, 2026.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. JPMorgan Chase & Co. (NYSE:JPM)
Number of Hedge Fund Holders: 131
JPMorgan Chase & Co. carries a profit margin of 31.50% and net income of $57.05 billion (FY25), securing its place on our list of the most profitable blue chip stocks to buy according to hedge funds, with analysts seeing 7.50% upside for the stock. That financial strength comes alongside a legal win for the bank and fresh commentary on the health of the American consumer.
On June 10, 2026, Reuters reported that JPMorgan Chase & Co., along with Barclays and Fifth Third, won the dismissal of a lawsuit brought by investors over the collapse of subprime auto lender Tricolor. U.S. District Judge Jed Rakoff in Manhattan threw out the case, with reasoning to follow. Holders of more than $270 million in Tricolor asset-backed notes had accused the banks of ignoring warning signs while financing and securitizing Tricolor’s auto loans. The banks argued the investors had alleged negligence at most, not intent to defraud. All three banks have reported nine-figure losses tied to Tricolor, which filed for liquidation in September.
Meanwhile, on June 9, 2026, Reuters reported that Marianne Lake, CEO of JPMorgan’s consumer and community banking division, said JPMorgan Chase & Co. is closely watching consumer health amid persistent inflation concerns. Speaking at the Morgan Stanley U.S. Financials Conference, Lake said consumers remain resilient and spending solid, though a small group is seeing wages fail to keep pace with inflation.
She added that cash buffers have normalized from pandemic-era levels, reducing resilience to future shocks, but said JPMorgan Chase & Co. still expects 2026 loan growth to exceed the industry average.
JPMorgan Chase & Co. is a global financial services company. It offers retail banking, investment banking, asset management, and credit services to consumers, businesses, and large institutional clients. The company operates through the JPMorgan and Chase brands.
9. Eli Lilly and Company (NYSE:LLY)
Number of Hedge Fund Holders: 132
With a profit margin of 34.99% and net income of $20.64 billion (FY25), Eli Lilly and Company (NYSE:LLY) ranks among the most profitable blue chip stocks to buy according to hedge funds. Meanwhile, analysts see 9.20% upside for the stock. That outlook comes during a particularly active stretch of regulatory and clinical news for Lilly’s drug pipeline.
On June 9, 2026, the FDA approved a new maintenance dosing regimen for EBGLYSS (lebrikizumab-lbkz), allowing a single 250 mg injection every eight weeks for adults and children 12 and older weighing at least 88 pounds with moderate-to-severe atopic dermatitis. EBGLYSS was already approved for once-monthly maintenance dosing, and the new option gives patients as few as six maintenance injections per year.
That update followed a wave of diabetes and obesity data presented at the ADA 86th Scientific Sessions.
On June 8, 2026, Eli Lilly and Company reported that Foundayo (orforglipron) outperformed oral semaglutide on A1C reduction and weight loss in the ACHIEVE-3 trial, with similar gains shown in ACHIEVE-2 and ACHIEVE-5. A day earlier, Lilly said Foundayo produced significant weight loss across all stages of menopause in post-hoc analyses of the ATTAIN-1 and ATTAIN-2 trials. Additionally, on June 6, 2026, Eli Lilly and Company reported full data from retatrutide’s TRIUMPH-1 obesity study and TRANSCEND-T2D-1 study in type 2 diabetes, showing substantial weight loss alongside improvements in knee osteoarthritis pain, sleep apnea, and A1C levels.
Following those updates, Jefferies raised its price target on Eli Lilly and Company to $1,350 from $1,330 and kept a “Buy” rating. The firm said some safety observations were manageable and that retatrutide’s overall profile would be difficult to beat in a modern large-scale global obesity Phase 3 trial.
Eli Lilly and Company is a healthcare company that develops human pharmaceutical products across cardiometabolic health, oncology, and immunology.
8. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 157
Mastercard Incorporated (NYSE:MA) carries a profit margin of 45.88% and net income of $14.97 billion (FY25), securing its place on our list of the most profitable blue chip stocks to buy according to hedge funds, with analysts seeing 32.80% upside for the stock. That bullish outlook comes as Mastercard rolls out new infrastructure aimed at capturing a new growth opportunity in machine-driven commerce.
On June 10, 2026, Mastercard Incorporated introduced Agent Pay for Machines (AP4M), a new service designed to permit, orchestrate, and settle payments between AI agents and machines at high speed across its global network. More than 30 industry leaders, including Adyen, Stripe, Coinbase, Cloudflare, OKX, and Checkout.com, are among the first to support adoption.
Jorn Lambert, Mastercard Incorporated’s chief product officer, said Agent Pay for Machines will create the conditions for what he called a “superbloom of AI business models,” allowing services to be bought and sold among agents at far different scales than payments today, with very high volumes, very small values, and very low latency.
Unlike traditional point-of-sale payments, these transactions are programmatic and always-on, executed in the background of digital commerce. The service builds on Mastercard Incorporated’s Agent Pay program, introduced in 2025, and supports credentialing, permissioning, transacting, and settlement across multiple payment types, including cards and stablecoins.
Mastercard Incorporated said the system establishes trust through Verifiable Intent, letting every agent be recognized and transact across ecosystems, while organizations can set authorization rules and spending limits that are enforced programmatically.
Mastercard Incorporated operates in the payments industry and is one of the leading payment processors for everyday consumers, financial institutions, governments, and businesses. The company is headquartered in New York, United States.
7. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 173
With a profit margin of 38.85% and net income of $23.13 billion (FY25), Broadcom Inc. (NASDAQ:AVGO) ranks among the most profitable blue chip stocks to buy according to hedge funds. Meanwhile, analysts see 29.70% upside for the stock. That bullish view comes alongside a fresh push by Broadcom to strengthen security across one of the software industry’s most widely used frameworks.
On June 08, 2026, Broadcom Inc. announced major security investments in the Spring and Java ecosystem, a framework relied on by more than half of Fortune 500 companies.
Broadcom Inc.’s Tanzu business released the largest set of Spring security updates to open source in the framework’s 23-year history. Broadcom is also extending its “clean-room build architecture,” the same approach used for Bitnami, to build Java dependencies across the entire Spring ecosystem.
The move comes as AI-detected security threats surge.
Broadcom Inc. said monthly security advisories reported by the Spring community jumped more than 1,700% from March to April 2026. In response, the company’s Spring engineering team has scaled up its use of AI-assisted security analysis, including frontier model-based scanning to identify vulnerabilities and validate fixes across the dependency ecosystem.
Purnima Padmanabhan, vice president and general manager of Broadcom Inc.’s Tanzu division, said the company has a deep responsibility for Spring’s security as its steward and sole committer, adding that protecting the Spring community and securing customers are inseparable goals.
As part of the update, Tanzu Spring customers now get day zero access to validated, common vulnerabilities and exposures (CVE)-only patches through the Spring Enterprise Repository before they reach open source. Customers also gain an SLSA Level 3-validated software supply chain that covers the full transitive dependency graph in the Spring Boot bill of materials. Spring Boot 4.0 alone manages 1,768 dependencies, and the supported portfolio totals more than 100,000 validated dependency builds.
Broadcom Inc. is a technology company that specializes in semiconductor devices (through the Semiconductor Solutions segment) and infrastructure software solutions (through the Infrastructure Software segment).
6. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 181
Visa Inc. (NYSE:V) carries a profit margin of 51.68% and net income of $20.06 billion (FY25), securing its place on our list of the most profitable blue chip stocks to buy according to hedge funds, with analysts seeing 23.10% upside for the stock. That outlook is reinforced by a series of technology announcements focused on positioning the company for the next phase of digital commerce.
Visa Inc. unveiled a series of new AI, stablecoin, and tokenization capabilities at its Payments Forum 2026 on June 10, 2026, aimed at helping clients prepare for the next generation of commerce. Chief Product and Strategy Officer Jack Forestell said artificial intelligence is transforming how commerce begins, while stablecoins are reshaping how money moves on the back end, and that Visa’s role is to make both work securely and at a global scale.
On the AI front, Visa Inc. expanded its Intelligent Commerce platform, which gives AI agents the trust, controls, and connectivity needed to discover, initiate, and complete transactions on behalf of consumers and businesses. New tools include Agent Score, built with New Generation to help merchants assess whether their websites are ready for agentic commerce, and an Agentic Directory that verifies legitimate agents and merchants.
Visa Inc. also announced a strategic partnership with OpenAI to enable secure Visa payments within agentic commerce, along with a Large Transaction Model trained on billions of transactions to improve fraud detection and reduce false declines.
Visa Inc. also enhanced its tokenization framework, adding richer transaction data and a new token assurance signal that evaluates trust throughout a token’s lifecycle, aimed at reducing false declines while limiting friction for consumers.
Regarding settlement, Visa Inc. announced it will build a technology layer allowing banks to convert deposits into programmable digital money. The company said its stablecoin settlement volume has reached an annualized run rate of about $7 billion as of March 2026, building on pilots launched in early 2025. Visa also reported more than 160 stablecoin-linked card programs live or in development globally.
Visa Inc. is a payment technology company operating in the United States and internationally. It operates VisaNet, a transaction-processing network that handles the clearing, authorization, and settlement of payments. The company offers its services under different brands such as PLUS, Visa, V PAY, Visa Electron, and Interlink.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 234
With a profit margin of 47.34% and net income of $55.13 billion (FY25), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among the most profitable blue chip stocks to buy according to hedge funds. Meanwhile, analysts see 9.80% upside for the stock.
Those figures are backed by continued operational and financial strength.
In mid-April, Taiwan Semiconductor Manufacturing Company Limited reported first-quarter profit of $18.2 billion, up 58% year-over-year, and its eighth straight quarter of double-digit growth. CEO C.C. Wei raised the full-year revenue growth forecast to more than 30% in U.S. dollar terms, up from a prior outlook of close to 30%, and said capital expenditure would come in at the high end of its $52 billion to $56 billion guidance range.
For the second quarter, Taiwan Semiconductor Manufacturing Company Limited guided revenue between $39 billion and $40.2 billion. Wei described AI-related demand as extremely robust and said TSMC’s conviction in the multi-year AI megatrend remains high.
The most recent data point arrived on June 10, 2026, when Taiwan Semiconductor Manufacturing Company Limited reported consolidated net revenue of NT$416.98 billion for May 2026, up 1.5% from April and 30.1% year-over-year. Revenue for the first five months of the year reached NT$1.96 trillion, a 30.0% increase over the same period in 2025.
That backdrop aligns with a broader industry outlook, as on the same day, UBS analyst Nicolas Gaudois projected that global semiconductor revenues will reach $2.38 trillion by 2027, driven by agentic AI lifting demand across the memory, logic, and CPU segments. Taiwan Semiconductor Manufacturing Company Limited was named among the firm’s preferred stocks, with foundry utilization rates and memory industry operating profits among the cycle indicators UBS described as pointing upward into late 2027.
Taiwan Semiconductor Manufacturing Company Limited is a Taiwanese multinational semiconductor contract manufacturing and design company that manufactures, packages, and tests integrated circuits for various industries.
4. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) carries a profit margin of 39.36% and net income of $60.46 billion (FY25), securing its place on our list of the most profitable blue chip stocks to buy according to hedge funds, with analysts seeing 41.10% upside for the stock.
That profitability is supported by a business that continues to grow at a rapid pace. In late April, Meta Platforms, Inc. reported first-quarter revenue of $56.3 billion, up 33% year-over-year and ahead of analyst estimates of $55.5 billion. The growth rate outpaced Alphabet’s and was nearly twice as fast as Microsoft’s and Amazon’s.
The results came with one notable caveat: shares fell 10% after management raised 2026 capital expenditure guidance to between $125 billion and $145 billion, up from a prior range of $115 billion to $135 billion.
Analysts, however, remain focused on the longer runway.
On June 9, 2026, Truist analyst Youssef Squali reiterated a “Buy” rating on Meta Platforms, Inc. with a price target of $840, framing the company as building its next high-margin revenue segment one subscription at a time. Squali said he remains constructive on Meta as it continues to outpace the digital ad market and diversify into new revenue streams. He pointed to Meta’s recent launch of Plus tiers across Facebook, Instagram, and WhatsApp, as well as paid Meta AI offerings, which provide users with additional personalization and engagement features.
Squali projects Meta Platforms, Inc.’s Plus features will attract more than 360 million paid subscriptions and generate over $20 billion in high-margin revenue by 2030, equal to roughly 5% of Meta’s revenue. Instagram Plus alone could contribute $10 billion annually by that year, with Meta AI adding around $6.5 billion.
Meta Platforms, Inc. develops products that allow people to share and connect with their family and friends using PCs, mobile devices, virtual reality (VR) headsets, and AI glasses. Some of its well-known apps include Facebook, Instagram, and WhatsApp. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 265
With a profit margin of 37.92% and net income of $132.17 billion (FY25), Alphabet Inc. (NASDAQ:GOOGL) ranks among the most profitable blue chip stocks to buy according to hedge funds. Meanwhile, analysts see 16.70% upside for the stock.
That standing is backed by results that continue to impress.
In late April, Alphabet Inc. reported total revenue of $109.9 billion, up 22% year-over-year. Google Cloud grew 63% to $20 billion, its best growth rate since the segment began reporting separately in 2020, with cloud operating income tripling to $6.6 billion. The unit’s backlog nearly doubled quarter-over-quarter to $460 billion, pointing to sustained demand ahead.
Most recently, Alphabet Inc. is drawing fresh attention on the chip front as well.
On June 8, 2026, Reuters reported that Alphabet Inc.’s Google has placed an order with Intel to manufacture more than three million tensor processing units in 2028, citing The Information. The potential order would bolster Intel’s contract chip manufacturing business as it works to compete with Taiwan’s TSMC, whose capacity constraints have pushed several major AI chip designers to explore alternatives. D.A. Davidson analyst Gil Luria noted that Google and Nvidia are especially motivated to support Intel given the current administration’s push for U.S.-based manufacturing.
Following that report, on June 9, 2026, TD Cowen analyst John Blackledge raised the firm’s price target on Alphabet Inc. to $475 from $450, keeping a “Buy” rating. The firm lifted its long-term Google Cloud estimates following a capacity and cloud AI revenue analysis, and expects Google’s data center capacity to rise more than tenfold from 2022 to 2031. TD also expects cloud margins to rise steadily.
Alphabet Inc. is a holding company that operates Google services, including search engines, ad platforms, Internet browsers, devices, mapping software, app stores, video streaming, and more. The company also offers cloud infrastructure and platform services, collaboration tools, and other services for enterprise customers, as well as healthcare-related services and internet services.
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 275
NVIDIA Corporation (NASDAQ:NVDA) carries a profit margin of 62.97% and net income of $120.07 billion (FY26), securing its place on our list of the most profitable blue chip stocks to buy according to hedge funds, with analysts seeing 36.90% upside for the stock.
That profitability is now backing an expanding footprint beyond chips and data centers, with NVIDIA Corporation moving deeper into physical AI and robotics.
On June 8, 2026, Reuters reported that CEO Jensen Huang said NVIDIA Corporation is partnering with South Korea’s LG Group on humanoid robots and data centers. Speaking to reporters after a meeting with LG Group Chairman Koo Kwang-mo in Seoul, Huang said the two companies are collaborating on motor technology and mechanical systems to advance humanoid robotics.
That announcement came a day before AI cloud company Nebius launched the Physical AI Living Lab on June 9, 2026, a six-month program equipping British and European robotics startups with NVIDIA Corporation’s physical AI development tools and Nebius’s cloud infrastructure. The first cohort is set to begin in September 2026, with participating startups gaining access to NVIDIA OSMO, Cosmos world foundation models, Isaac Sim, and Isaac Lab, all running on Nebius infrastructure built on NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs.
Both developments follow a record first quarter.
On May 20, 2026, NVIDIA Corporation reported fiscal first quarter 2027 revenue of $81.6 billion, up 85% year-over-year, with Data Center revenue of $75.2 billion rising 92% annually. Non-GAAP diluted EPS came in at $1.87, up 140% year-over-year. For the second quarter, the company guided revenue of $91.0 billion, plus or minus 2%.
NVIDIA Corporation is a fabless semiconductor and AI computing company that designs GPUs, AI accelerators, Application Programming Interfaces (APIs), and system-on-a-chip units. Through its CUDA ecosystem, the company enables industries ranging from autonomous vehicles to scientific research by advancing AI, accelerated computing, and data center infrastructure.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
With a profit margin of 39.34% and net income of $101.83 billion (FY25), Microsoft Corporation (NASDAQ:MSFT) ranks among the most profitable blue chip stocks to buy according to hedge funds. Meanwhile, analysts see 38.20% upside for the stock.
That standing is well-supported by results, and Microsoft Corporation is actively broadening its revenue base beyond cloud and AI.
In April, Microsoft reported fiscal third-quarter revenue of $82.9 billion, with Azure growing 40% year over year. Reported EPS came in at $4.27, topping the $4.06 consensus. The company’s AI business crossed a $37 billion annualized revenue run rate, up 123% year-over-year, and management noted that nearly 90% of Fortune 500 companies now run active AI agents built with Copilot Studio.
Meanwhile, on June 10, 2026, Reuters reported that the Microsoft-owned platform launched BrandWorks, a newly assembled team of marketing experts aimed at delivering higher-performing ad campaigns for business advertisers. LinkedIn expects BrandWorks to generate an annualized run rate of $100 million next fiscal year, according to a source familiar with the matter.
The team, led by VP Alex Josephson, has grown roughly 60% in recent months through hires from TikTok, Meta, and X. Its Top Voices 360 program, which connects advertisers with creators for sponsored content, drove more than $20 million in revenue from May 2025 to May 2026, with clients including SAP, IBM, and ServiceNow. Microsoft Corporation’s LinkedIn also said it expects revenue from BrandLink, its video ad program, to nearly triple in the current fiscal year.
Microsoft Corporation is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
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