On Wednesday, October 8, the S&P 500 and the Nasdaq composite reached new all-time closing highs. The S&P 500 gained 0.58%. This performance was supported by gains in the information technology, utilities, and industrials sectors. The tech-heavy Nasdaq increased by 1.12%. However, the Dow Jones Industrial Average fell slightly as it declined 1.20 points.
The stocks did not show a lot of reaction to the release of the Fed’s September meeting minutes. In the meeting, the Federal Reserve cut interest rates for the first time in 2025. The minutes revealed that officials had different opinions about how much more to cut rates.
At the same time, the current government shutdown stretched into its 8th day on Wednesday. The Senate rejected dueling stopgap funding bills once again, which marks the sixth failed attempt to advance legislation to reopen the government.
The shutdown has not had much effect on the stock market so far. However, if it continues longer, it could present a bigger threat and start affecting investor confidence as it will potentially be weighing on the US economy.
With this background in mind, let’s take a look at the 10 most profitable stocks of the last 5 years.
Our Methodology
To compile our list of the 10 most profitable stocks of the last 5 years, we looked for companies with a compound annual growth rate (CAGR) in net income exceeding 15% over the past 5 years. To ensure the reliability of our findings, we consulted Seeking Alpha to confirm the 5-year net income growth rate for each stock. Additionally, we confirmed that these stocks had positive trailing twelve-month (TTM) net income.
Next, we focused on the top 10 most profitable stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q2 2025 database of 983 elite hedge funds. Finally, the 10 most profitable stocks of the last 5 years were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q2 2025.
Why do we care about what hedge funds do? 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Most Profitable Stocks of the Last 5 Years
10. JPMorgan Chase & Co. (NYSE:JPM)
5-Year Net Income CAGR: 17.58%
TTM Net Income: $55.15 Billion
Number of Hedge Fund Holders: 124
JPMorgan Chase & Co. (NYSE:JPM) is one of the most profitable stocks of the last 5 years. On October 6, Reuters reported that JPMorgan Chase & Co. (NYSE:JPM) is appointing Conor Hillery and Matthieu Wiltz as co-chief executive officers for Europe, the Middle East and Africa (EMEA). This information comes from an internal memo seen by Reuters.
This update comes as JPMorgan Chase & Co. (NYSE:JPM) looks to step up its efforts in the region and aims to raise its EMEA revenues by 20% by the end of the decade. Hillery and Wiltz together bring nearly 50 years of experience at the bank. They were previously deputies to Filippo Gori, the outgoing chief.
Hillery is currently the head of investment banking in the EMEA region. Wiltz leads the sales division in the region. JPMorgan Chase & Co. (NYSE:JPM) said these two bring a combination of market knowledge and industry expertise.
According to JPMorgan Chase & Co. (NYSE:JPM), these two new CEOs will keep their current roles in banking and sales and join the commercial and investment bank management team.
JPMorgan Chase & Co. (NYSE:JPM) is an American multinational financial services firm with leading positions in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management.
9. Berkshire Hathaway Inc. (NYSE:BRK-B)
5-Year Net Income CAGR: 23.13%
TTM Net Income: $62.92 Billion
Number of Hedge Fund Holders: 133
Berkshire Hathaway Inc. (NYSE:BRK-B) is one of the most profitable stocks of the last 5 years. On October 2, Berkshire Hathaway Inc. (NYSE:BRK-B) announced that it has entered a definitive agreement to acquire Occidental’s chemical business, OxyChem.
According to the report by Berkshire Hathaway Inc. (NYSE:BRK-B), this deal has an all-cash transaction value of $9.7 billion and is expected to be concluded in the fourth quarter of 2025.
OxyChem manufactures essential commodity chemicals that are used in areas like water treatment, pharmaceuticals, healthcare, and both commercial and residential development.
Through this acquisition, Berkshire Hathaway Inc. (NYSE:BRK-B) will get a strong set of operating assets, which are supported by an experienced and skilled team. OxyChem will become an operating subsidiary within Berkshire Hathaway Inc. (NYSE:BRK-B)
Berkshire Hathaway Inc. (NYSE:BRK-B) is an American multinational company that is engaged in a wide range of businesses including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, services, and retailing.
8. Netflix, Inc. (NASDAQ:NFLX)
5-Year Net Income CAGR: 30.75%
TTM Net Income: $10.25 Billion
Number of Hedge Fund Holders: 133
Netflix, Inc. (NASDAQ:NFLX) is one of the most profitable stocks of the last 5 years. On October 3, Oppenheimer analysts reiterated an Outperform rating on Netflix, Inc. (NASDAQ:NFLX) and kept the price target at $1,425.
Despite some weakness in the stock’s performance recently, the firm based this decision on strong third-quarter engagement data. Netflix, Inc. (NASDAQ:NFLX) plans to release its Q3 2025 results on October 21.
The analysts said:
“3Q engagement has been strong, with hours viewed +20% y/y and should only improve long-term as NFLX pushes more into live events, expanding its competitive advantage.”
Oppenheimer also believes that sports rights deals could add further value. Media reports show that Netflix, Inc. (NASDAQ:NFLX) might soon secure an exclusive deal for the New York Yankees’ Opening Day game. The firm highlighted the possibility of an NFL media rights announcement as the NFL renegotiates its deals ahead of schedule.
The analysts are also not concerned about competitive risks from media mergers. Oppenheimer believes the rumored Warner Bros. Discovery (WBD) and PSKY deal will not have much impact on Netflix, Inc. (NASDAQ:NFLX). This view is based on the firm’s analysis of the company’s viewership data.
Oppenheimer analysts also said:
“NFLX should also provide 2026 financial guidance for the first time, which we see as another catalyst.”
Netflix, Inc. (NASDAQ:NFLX) is an American media and entertainment company that provides streaming services on a wide variety of TV shows, movies, documentaries, original content, and games across a range of genres and languages.
7. Broadcom Inc. (NASDAQ:AVGO)
5-Year Net Income CAGR: 50.12%
TTM Net Income: $18.93 Billion
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the most profitable stocks of the last 5 years. On September 30, KeyBanc Capital Markets kept an Overweight rating for Broadcom Inc. (NASDAQ:AVGO) and increased its price target from $400 to $420.
This update reflects a big upward revision by the firm for CowWos CoWoS (Chip on Wafer on Substrate) supply in 2026. KeyBanc now expects supply to reach 190,000 units in 2026, which would represent an increase of more than 160% compared to last year. This growth in supply is expected to be mainly because Broadcom Inc. (NASDAQ:AVGO) will keep its 100% share for Google’s Tensor Processing Unit (TPU) franchise through 2026 because MediaTek’s TPU7e has been delayed.
According to KeyBanc, TPU shipments could more than double in 2026 as Google plans to make the chip available for a wider range of workloads, which is expected to further strengthen Broadcom Inc.’s (NASDAQ:AVGO) position in the AI chip industry.
Broadcom Inc. (NASDAQ:AVGO) is an American multinational technology company that designs, develops, and supplies a variety of semiconductor, enterprise software, and security solutions.
6. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
5-Year Net Income CAGR: 25.53%
TTM Net Income: $44.43 Billion
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is one of the most profitable stocks of the last 5 years. On October 9, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported its impressive revenue performance for September 2025.
According to the report, the company recorded revenue of about TWD 330.98 billion for the month on a consolidated basis.
Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) revenue for September 2025 reflects a small decline of 1.4% compared to August 2025. However, this is a strong increase of 31.4% compared to September 2024.
The company’s revenue from January to September 2025 reached TWD 2,762.96 billion. This represents an increase of 36.4% compared to the same period in 2024.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company. It manufactures, packages, and tests integrated circuits for a wide range of industries.
5. Alphabet Inc. (NASDAQ:GOOGL)
5-Year Net Income CAGR: 29.66%
TTM Net Income: $115.57 Billion
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the most profitable stocks of the last 5 years. On October 7, Citizens reaffirmed its Market Outperform rating on Alphabet Inc. (NASDAQ:GOOGL) with a $290 price target.
The research firm pointed out that Alphabet Inc. (NASDAQ:GOOGL) is integrating AI across its business. However, the analysts noted that OpenAI’s speed of product development could present a challenge and Google would need to speed up its own rollout of AI.
Citizens also cautioned that ChatGPT’s integration with third parties could mean that ChatGPT will have increased control over user experience and content curation, which could influence retail media.
Alphabet Inc. (NASDAQ:GOOGL) is a global technology company and the parent company of Google. The company’s products include Search, Ads, Chrome, Cloud, YouTube, and Android.
4. NVIDIA Corporation (NASDAQ:NVDA)
5-Year Net Income CAGR: 91.21%
TTM Net Income: $86.59 Billion
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the most profitable stocks of the last 5 years. On October 9, Cantor Fitzgerald increased its price target for NVIDIA Corporation (NASDAQ:NVDA) from $240 to $300 while keeping an Overweight rating after meeting with the company’s CEO Jensen Huang, CFO Colette Kress, and other senior executives.
The investment firm stressed that the AI market is “not a bubble” and described the market as being in its early stages of a multi-trillion-dollar infrastructure build-out. The firm believes that hyperscalers alone offer visibility into hundreds of billions in demand in the coming years.
Cantor Fitzgerald also noted NVIDIA Corporation’s (NASDAQ:NVDA) recent partnership with OpenAI, which is expected to help OpenAI establish itself as a self-hosted hyperscaler.
The firm forecasts NVIDIA Corporation’s (NASDAQ:NVDA) EPS to reach $8 by calendar year 2026 and $11 in 2027. This is much higher than the consensus estimates $6.26 and $7.36, respectively. Cantor Fitzgerald also believes the company will capture at least 75% of the AI accelerator market over time.
NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company known for producing graphics processing units (GPUs), AI hardware and software, and high-performance computing (HPC) solutions.
3. Meta Platforms, Inc. (NASDAQ:META)
5-Year Net Income CAGR: 24.90%
TTM Net Income: $71.51 Billion
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the most profitable stocks of the last 5 years. On October 7, Meta Platforms, Inc. (NASDAQ:META) announced major upgrades for Facebook Reels. The company is making content recommendations better and adding new social features to improve the user experience.
Meta Platforms, Inc. (NASDAQ:META) has invested in enhancing Facebook’s recommendations system to learn user interests faster and show more recent and relevant reels. The upgraded system now shows 50% more reels from creators that were posted on the same day, giving users newer content more quickly.
A new feature, called “friend bubbles,” will also show users which reels and posts their friends have liked. Users can tap on these bubbles to start private chats with their friends. Meta Platforms, Inc. (NASDAQ:META) said this new feature is bringing Facebook back to its roots.
According to the report by Meta Platforms, Inc. (NASDAQ:META), another feature being added is AI-powered suggested search on select reels. This will allow users to find similar content without leaving the reels player, making it easy to discover more content about a topic they are interested in.
Meta Platforms, Inc. (NASDAQ:META) is an American multinational technology company that owns and operates Facebook, Instagram, Threads, Messenger, and WhatsApp.
2. Microsoft Corporation (NASDAQ:MSFT)
5-Year Net Income CAGR: 18.12%
TTM Net Income: $101.83 Billion
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the most profitable stocks of the last 5 years. On October 3, BMO Capital reiterated its Outperform rating on Microsoft Corporation (NASDAQ:MSFT) with a price target of $650. This decision came after speaking with cloud industry experts about the corporation’s cloud business.
BMO Capital received positive feedback on Microsoft Corporation’s (NASDAQ:MSFT) Azure cloud platform. The investment firm pointed out that it seems the company is benefiting from “larger and more durable cloud migrations,” driven in part by VMWare migrations.
The firm expects Microsoft Corporation’s (NASDAQ:MSFT) Azure to grow by 37% in constant currency for the September quarter. The firm also indicated that there might be “upside tension” to this forecast.
Microsoft Corporation (NASDAQ:MSFT) is an American technology company that specializes in AI-powered cloud, productivity, and business solutions. It also develops and markets software, services, and hardware.
1. Amazon.com, Inc. (NASDAQ:AMZN)
5-Year Net Income CAGR: 39.90%
TTM Net Income: $70.62 Billion
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the most profitable stocks of the last 5 years. On October 9, BMO Capital reaffirmed its Outperform rating for Amazon.com, Inc. (NASDAQ:AMZN) with a price target of $280.
BMO Capital’s latest checks for Q3 2025 suggest that AWS growth acceleration will continue during the second half of 2025. However, growing competition and capacity limits could limit further growth potential for Amazon.com, Inc.’s (NASDAQ:AMZN) cloud computing division.
The investment firm pointed out that Amazon.com, Inc.’s (NASDAQ:AMZN) retail sales remain strong. However, we could see some concerns about the sustainability of this trend as the company moves into Q4 2025.
BMO Capital also expects Amazon.com, Inc.’s (NASDAQ:AMZN) advertising business to keep expanding and grow faster than any other segment in the second half of 2025.
Amazon.com, Inc. (NASDAQ:AMZN) is an American technology company that focuses on e-commerce, cloud computing, and other services, including digital streaming and artificial intelligence solutions.
While we acknowledge the potential of AMZN as an investment, 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 AMZN and that has a 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 15 Best American Tech Stocks to Buy Right Now and 14 Small Publicly Traded Semiconductor Companies to Invest in Now.
Disclosure: None.