10 Most Profitable Blue Chip Stocks to Buy According to Hedge Funds

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. (NYSE:JPM) 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. (NYSE:JPM), 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. (NYSE:JPM) 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. (NYSE:JPM) still expects 2026 loan growth to exceed the industry average.

JPMorgan Chase & Co. (NYSE:JPM) 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 (NYSE:LLY) 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 (NYSE:LLY) 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 (NYSE:LLY) 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 (NYSE:LLY) 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 (NYSE:MA) 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 (NYSE:MA)’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 (NYSE:MA)’s Agent Pay program, introduced in 2025, and supports credentialing, permissioning, transacting, and settlement across multiple payment types, including cards and stablecoins.

Mastercard Incorporated (NYSE:MA) 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 (NYSE:MA) 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. (NASDAQ:AVGO) announced major security investments in the Spring and Java ecosystem, a framework relied on by more than half of Fortune 500 companies.

Broadcom Inc. (NASDAQ:AVGO)’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. (NASDAQ:AVGO) 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. (NASDAQ:AVGO)’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. (NASDAQ:AVGO) 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. (NYSE:V) 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. (NYSE:V) 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. (NYSE:V) 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. (NYSE:V) 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. (NYSE:V) 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. (NYSE:V) 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.

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