In this article, we will look at the 11 Most Profitable Tech Stocks to Invest in Now.
The technology sector has been on a strong run this year. The S&P 500 Information Technology Sector Index has rallied more than 14% year-to-date, outperforming the broader S&P 500 Index, which is up 10%. If we look deeper into the performance, the tech-software sector index, the IGV index, has advanced 6% in 2025. Yet, according to an August 25 report from RBC Capital Markets, most of that strength has come from just three large companies. Stripping them out, the IGV index would be down about 14%.
Chen Zhao, Chief Global Strategist at Alpine Macro, echoed this theme of concentration during an interview with CNBC on August 21. He drew parallels between the late-1990s internet and IT boom and today’s surge in artificial intelligence and data center spending. Zhao noted that data center investment is now contributing to U.S. GDP growth on par with consumer spending, which is regarded as the backbone of the economy.
READ ALSO: 15 Best Data Center Stocks to Buy Now and Top 10 Stocks to Buy and Hold Forever.
In terms of market dynamics, Zhao compared the recent pullback and rebound in equities to the 1998 LTCM crisis, when the Federal Reserve’s swift rate cuts fueled a sharp rally. He suggested that the next phase of monetary easing, whether incremental or more substantial, could set the stage for another powerful surge in U.S. equities, led by large-cap technology names often referred to as the “Magnificent Seven.”
At the same time, Zhao acknowledged investor concerns about a potential AI-driven bubble. He pointed out, however, that valuations remain well below the extremes of the dot-com era, when multiples peaked near 40 times earnings. With the S&P 500 currently trading around 22 times earnings, he argued the market still has room to advance before reaching bubble-like conditions.
With these factors in mind, we now turn to the 11 most profitable tech stocks to invest in now.
Photo by Pakata Goh on Unsplash
Our Methodology
To compile our list of the most profitable tech stocks to invest in, we screened for U.S.-listed technology and tech-adjacent companies with a market capitalization of at least $2 billion. Instead of relying only on absolute earnings, we applied profitability screens, selecting firms with both operating and net profit margins above 20%. This approach ensures that larger peers with higher overall earnings do not overshadow high-margin firms. From this universe, we ranked stocks by trailing twelve-month (TTM) net income, placing the company with the highest earnings at the top of the list. We have also added the number of hedge fund holders for each stock, based on the hedge fund sentiment data as of Q2 2025 from Insider Monkey’s database.
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. 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).
Note: All pricing data is as of market close on August 25, 2025.
11 Most Profitable Tech Stocks to Invest in Now
11. Netflix Inc. (NASDAQ:NFLX)
TTM Net Income: $10.3 Billion
Number of Hedge Fund Holders: 133
Netflix Inc. (NASDAQ:NFLX) is one of the most profitable tech stocks to invest in now. On August 17, JPMorgan’s Doug Anmuth reaffirmed a Neutral rating on Netflix Inc. (NASDAQ:NFLX) with a $1,300 price target. He pointed out that while management lifted its 2025 revenue guidance, some headwinds remain. Viewership remains affected by paid-sharing initiatives and earlier delays in new content releases. That said, management expects engagement to improve meaningfully in the second half of the year.
In July, Netflix Inc. (NASDAQ:NFLX) had increased its full-year revenue forecast to $44.8–$45.2 billion, about $1 billion higher than its earlier midpoint and representing growth of 15–16%. The company continues to prioritize international expansion and original programming.
In that regard, Bloomberg reported on August 20 that Netflix Inc. (NASDAQ:NFLX) has invested more than $200 million in Thailand over the past four years, turning the country into a regional hub for production. That investment appears well-timed, with Thai content drawing approximately 750 million viewing hours in 2024, and nine new titles are scheduled for release this year.
Separately, Netflix Inc. (NASDAQ:NFLX) is in advanced talks with Major League Baseball for exclusive rights to the Home Run Derby through 2028, in a deal estimated at over $35 million per year. If agreed, it would expand Netflix’s diversification strategy into live sports, broadening its offering beyond scripted shows and films.
Netflix Inc. (NASDAQ:NFLX) is a global streaming entertainment service that offers a diverse array of movies, TV shows, games, and more, with unlimited viewing on internet-connected devices.
10. Qualcomm Inc. (NASDAQ:QCOM)
TTM Net Income: $11.6 Billion
Number of Hedge Fund Holders: 76
Qualcomm Inc. (NASDAQ:QCOM) is one of the most profitable tech stocks to invest in now. Qualcomm Inc. (NASDAQ:QCOM) presented at the Oppenheimer Technology, Internet & Communications Conference on August 12, outlining its growth trajectory in automotive and industrial IoT. Management emphasized that the company is on track to reach its $4 billion automotive revenue target ahead of schedule, supported by strong demand.
Qualcomm Inc.’s (NASDAQ:QCOM) automotive roadmap also includes advanced ADAS silicon and safety-grade chips, underscoring its role in software-defined vehicles. Beyond autos, the company is leveraging this expertise in the industrial IoT market with its IQ series processors, aiming to generate $4 billion in revenue from this segment by 2029.
To broaden capabilities, Qualcomm Inc. (NASDAQ:QCOM) has pursued targeted acquisitions, including Edge Impulse for AI model deployment and AutoTox for V2X safety applications. These moves expand its software and hardware offerings, strengthening its positioning in connected industries.
Qualcomm Inc. (NASDAQ:QCOM) is a semiconductor technology company specializing in wireless communications. It engages in 5G technology, supplies chipsets and system-on-chip solutions for mobile devices, automotive applications, and the Internet of Things (IoT). Its Snapdragon processors are widely used across smartphones and connected devices.
