10 Most Profitable Mega Cap Stocks to Buy

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1. Alphabet Inc. (NASDAQ:GOOGL)

Net Income (TTM): $132.17 billion

Operating Margin (TTM): 31.57%

Number of Hedge Fund holdings: 243

On February 9, Doug Anmuth, an analyst at J.P. Morgan, reiterated his Buy rating on Alphabet Inc. (NASDAQ:GOOGL) with a price target of $395. This reaffirmed price target reflects approximately 22% upside from the current price.

Three days earlier, KeyBanc Capital Markets lifted the price target on Alphabet Inc. (NASDAQ:GOOGL) to $370 from $360 and maintained an Overweight rating. In its analysis, the firm highlighted the company’s increased capex to back its growth in Google Services and Google Cloud businesses. Although concerns about the scale of investment exist, the giant demonstrates robust performance across its segments, KeyBanc noted.

According to the firm, Search expanded in 2025, and Cloud backlog surged nearly 55% QoQ in the fourth quarter, with Gemini, Alphabet’s AI assistant, achieving 750 million monthly active users. Alphabet Inc. (NASDAQ:GOOGL) is what KeyBanc Capital Markets describes as “more of a revisions than multiple expansion story,” noting that the rise in share price would be driven more by earnings growth than by valuation multiple expansion.

Alphabet Inc. (NASDAQ:GOOGL) is a global technology company that provides web-based search, consumer content, enterprise solutions, software engines, and advertising through its subsidiaries. Incorporated in 1998, the company’s segments include Google Services, Google Cloud, and Other Bets.

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

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