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.
9. Broadcom Inc. (NASDAQ:AVGO)
TTM Net Income: $12.9 Billion
Number of Hedge Fund Holders: 156
Broadcom Inc. (NASDAQ:AVGO) is one of the most profitable tech stocks to invest in now. On August 26, Citi’s Christopher Danely reiterated a Buy rating on Broadcom Inc. (NASDAQ:AVGO) with a $315 price target, citing the company’s momentum in artificial intelligence. He expects Q3 FY 2025 earnings to exceed consensus, driven by strong demand for AI-related services from major customers, including Google and Meta. AI sales are projected to represent nearly 30% of Broadcom’s fiscal 2025 revenue.
Danely acknowledged concerns about potential margin pressure from AI, but noted that recovery in Broadcom Inc.’s (NASDAQ:AVGO) non-AI semiconductor business could offset those risks. Reflecting this view, he has raised revenue and earnings forecasts for the coming years. Broadcom’s expansion into wireless and other markets is also seen as providing additional growth avenues.
Earlier in July, Danely had already increased his price target to $315 from $285 in a Q2 preview, arguing that sector concerns over tariffs had not materialized. He anticipated a cyclical upturn driven by demand recovery and inventory restocking, which would further support his bullish stance on Broadcom Inc. (NASDAQ:AVGO).
Broadcom Inc. (NASDAQ:AVGO) is a global technology company that designs, develops, and supplies a wide range of semiconductor and infrastructure software solutions.
8. Alibaba Group Holding Ltd (NYSE:BABA)
TTM Net Income: $18.0 Billion
Number of Hedge Fund Holders: 101
Alibaba Group Holding Ltd. (NYSE:BABA) is one of the most profitable tech stocks to invest in now. On August 26, Bloomberg reported that Alibaba upgraded its open-source video AI model, Wan2.2-S2V, which can convert portrait photos into film-quality avatars capable of speech and performance. The announcement reflects Alibaba’s effort to accelerate AI innovation and keep pace with global rivals such as Google, Kuaishou, and emerging startups.
The company has increased its focus on AI in response to rising competition, though its near-term financial results have been mixed. In May, Alibaba Group Holding Ltd. (NYSE:BABA) reported 7% revenue growth, which was weighed down by weak domestic demand. Nonetheless, management has committed to long-term AI investments, pledging over ¥380 billion ($53 billion) toward infrastructure, including data centers, over the next three years.
Alibaba Group Holding Ltd. (NYSE:BABA) sees its AI and cloud network as a foundation for becoming a key partner to companies deploying real-world AI models, which require increasing computing power. The company’s stock has gained more than 46% year-to-date, with analysts broadly positive. Over 90% of analysts covering it have assigned a Buy or equivalent rating, and the consensus price target of $150 implies more than 20% upside from current levels.
Alibaba Group Holding Ltd. (NYSE:BABA) is one of China’s largest technology and e-commerce conglomerates. Beyond e-commerce, the company operates several businesses, including cloud services, digital payments, and logistics.
7. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)
TTM Net Income: $45.6 Billion
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is one of the most profitable tech stocks to invest in now. On August 26, Nikkei Asia reported that Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) is phasing out Chinese chipmaking equipment from its most advanced plants. The decision reflects preparation for potential U.S. restrictions that could affect production and market access. The company is removing Chinese tools from its new 2-nanometer lines, which are scheduled to begin mass output this year.
This move follows a push by U.S. lawmakers to limit technology that could benefit China’s strategic industries. The proposed Chip EQUIP Act would also bar companies receiving U.S. subsidies from using equipment sourced from foreign entities of concern, including Chinese suppliers.
The restrictions primarily target chips with 7nm or smaller dimensions, which are critical for AI data centers. Taiwan Semiconductor Manufacturing Company Ltd.’s (NYSE:TSM) decision to act now is seen as a way to preserve subsidy eligibility while also lowering regulatory and operational risks.
Even with these geopolitical headwinds, Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) remains central to the global semiconductor supply chain, given its dominant position in advanced manufacturing. The consensus price target suggests a potential upside of around 15% from current levels.
Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) is the largest dedicated semiconductor foundry in the world, producing advanced integrated circuits for global industries including technology, communications, and automotive.
6. Amazon.com Inc. (NASDAQ:AMZN)
TTM Net Income: $70.6 Billion
Number of Hedge Fund Holders: 335
Amazon.com Inc. (NASDAQ:AMZN) is one of the most profitable tech stocks to invest in now. On August 22, Wells Fargo’s Ken Gawrelski highlighted the potential and risks of Amazon’s push into grocery retail, maintaining an Equal Weight rating with a $245 price target.
The analyst estimated that for every percentage point of U.S. grocery share captured, Amazon.com Inc.’s (NASDAQ:AMZN) worst-case operating income could range between $2.5 and $3 billion, given the margin and operational complexities of the business.
Earlier, on August 14, Morgan Stanley’s Brian Nowak reiterated a Buy rating with a $300 target, pointing to Amazon.com Inc.’s (NASDAQ:AMZN) deeper grocery expansion as a long-term growth driver. The company has broadened its offerings on Amazon.com, including fresh and perishable items, and reduced delivery fees for Prime members. Same-day grocery delivery is now available in over 1,000 locations and is expected to expand to 2,300 by year-end.
In 2024, Amazon.com Inc. (NASDAQ:AMZN) recorded more than $100 billion in sales of grocery and household essentials, excluding sales from Whole Foods and Amazon Fresh. Analysts believe the company’s scale, logistics network, and data-driven operations provide an edge in capturing a share of the $1.5 trillion U.S. grocery market.
Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.
5. Meta Platforms Inc. (NASDAQ:META)
TTM Net Income: $71.5 Billion
Number of Hedge Fund Holders: 260
Meta Platforms Inc. (NASDAQ:META) is one of the most profitable tech stocks to invest in now. In an August 26 meeting, President Donald Trump remarked that Meta Platforms is planning a $50 billion investment in its Louisiana data center, called “Hyperion.” However, Meta Platforms Inc. (NASDAQ: META) declined to comment on the remark.
While the company has only confirmed spending above $10 billion on the facility, a report from Reuters suggests the company has secured $29 billion in financing, led by Pacific Investment Management Co. and Blue Owl Capital, marking the largest funding package to date for an AI-focused data center.
The scale of the project reflects Meta Platforms Inc.’s (NASDAQ:META) aggressive commitment to AI infrastructure. The company has over 3.4 billion people using its apps daily, which supports its efforts in developing its expertise in personal superintelligence. Recent developments include a $10 billion, six-year cloud partnership with Google and the licensing of Midjourney’s image and video aesthetic technology.
The investment underscores Meta Platforms Inc.’s (NASDAQ:META) intention to build infrastructure in line with its long-term AI ambitions, although the full cost and scope of Hyperion remain unclear. For now, the project highlights the scale of resources Meta is dedicating to maintain its position in the evolving AI landscape.
Meta Platforms Inc. (NASDAQ:META) operates major social media services, including Facebook, Instagram, WhatsApp, Messenger, and Threads, along with virtual reality products like Oculus headsets.
4. Nvidia Corp. (NASDAQ:NVDA)
TTM Net Income: $76.8 Billion
Number of Hedge Fund Holders: 235
Nvidia Corp. (NASDAQ:NVDA) is one of the most profitable tech stocks to invest in now. On August 18, TD Cowen’s Joshua Buchalter reiterated a Buy rating on Nvidia Corp. (NASDAQ:NVDA), raising his price target from $175 to $235, implying nearly 30% upside. He argued that Nvidia Corp. (NASDAQ:NVDA) is well-positioned to outperform expectations ahead of its fiscal Q2 results, scheduled for release on August 27, despite uncertainties tied to H20 chips and China-related restrictions.
Buchalter pointed to Nvidia Corp.’s (NASDAQ:NVDA) strong fundamentals and smooth transition from its Blackwell to Blackwell Ultra architectures, both of which are critical for AI and high-performance computing workloads. He also highlighted Nvidia Corp.’s (NASDAQ:NVDA) valuation relative to peers, noting that the stock trades at a discount to Broadcom despite offering what he views as a cleaner investment narrative.
Consensus expects Nvidia Corp. (NASDAQ:NVDA) to post Q2 adjusted EPS of $1.0 on $45.8 billion in revenue. Buchalter’s October-quarter revenue forecast of $55 billion were ahead of street estimates, but excluded any H2O-related sales due to uncertainty surrounding the timing. He added that 2026 earnings expectations could trend closer to $7 per share, with greater clarity expected over the next couple of quarters.
Nvidia Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system-on-a-chip units (SoCs), and AI hardware and software.
3. Apple Inc. (NASDAQ:AAPL)
TTM Net Income: $99.3 Billion
Number of Hedge Fund Holders: 156
Apple Inc. (NASDAQ:AAPL) is one of the most profitable tech stocks to invest in now. On August 25, Bloomberg reported that Elon Musk’s companies X and xAI filed a lawsuit against Apple Inc. (NASDAQ:AAPL) and OpenAI in federal court in Fort Worth, Texas, seeking billions of dollars in damages. The complaint alleges that Apple’s integration of ChatGPT into the iPhone operating system unfairly favors OpenAI, stifles competition, and limits consumer choice.
Musk’s team argued that Apple’s arrangement makes it impossible for rival chatbots to reach the top of the App Store rankings, thereby curbing innovation in generative AI. The filing also contends that Apple Inc. (NASDAQ:AAPL) and OpenAI’s exclusive setup has effectively locked up markets to maintain monopolistic power, mirroring concerns raised by regulators and the U.S. Department of Justice in ongoing antitrust actions against Apple.
Apple Inc. (NASDAQ:AAPL) has already drawn regulatory scrutiny worldwide for how it runs the App Store, most notably during its extended clash with Epic Games. Earlier this year, the U.S. government filed a separate lawsuit accusing the company of using its dominance in app distribution to block competition and slow the rise of so-called “super apps.”
Even with the latest legal challenges, investor sentiment has not wavered much. On August 26, Goldman Sachs reiterated its Buy rating on Apple Inc. (NASDAQ:AAPL) with a $266 target price, pointing to catalysts such as design changes expected in the iPhone 17, potential adjustments in pricing, and stronger carrier-led promotions.
Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets innovative products, including the iPhone, iPad, Mac computers, Apple Watch, and Apple TV. The company also offers a range of software and services, such as the iOS and macOS operating systems, iCloud, advertising, payment services, Apple Music, and the App Store.
2. Microsoft Corp. (NASDAQ:MSFT)
TTM Net Income: $101.8 Billion
Number of Hedge Fund Holders: 294
Microsoft Corp. (NASDAQ:MSFT) is one of the most profitable tech stocks to invest in now. On August 25, RBC Capital’s analysts argued that concerns about the “death of software” in a post-AI world are overstated. Rishi Jaluria, an analyst at RBC, suggested that while AI will reshape the sector, traditional software providers retain valuable distribution and data advantages that could help them adapt and monetize AI over time.
The analysts outlined three possibilities: incumbents benefiting selectively, new AI firms scaling rapidly, and M&A activity accelerating as incumbents acquire AI-focused players. They cautioned, however, that monetization could take longer than investors expect, with broad adoption unlikely before 2028.
RBC warned about the risk of disintermediation, where AI-focused startups initially plug into existing platforms but later compete directly, potentially reducing user activity for established big players. Even so, analysts see Microsoft Corp. (NASDAQ:MSFT) as one of the best-positioned companies to handle this shift, benefiting from both its distribution scale and AI integration.
Before publishing this report, Jaluria had reaffirmed a Buy rating on Microsoft Corp. (NASDAQ:MSFT) on July 31 and raised the price target to $640 from $525.
Microsoft Corporation (NASDAQ:MSFT) develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide.
1. Alphabet Inc. (NASDAQ:GOOGL)
TTM Net Income: $115.6 Billion
Number of Hedge Fund Holders (GOOGL): 219
Number of Hedge Fund Holders (GOOG): 178
Alphabet Inc. (NASDAQ:GOOGL) is one of the most profitable tech stocks to invest in now. On August 21, Goldman Sachs analyst Eric Sheridan reiterated a Buy rating on the stock, citing the company’s continued progress in AI and hardware integration. At its recent product event, Alphabet Inc. (NASDAQ:GOOGL) unveiled new devices such as the Pixel 10 series, Pixel Watch 4, and Pixel Buds 2A, all featuring deeper integration with the company’s technology ecosystem.
Although hardware contributes only a small portion of Alphabet Inc.’s (NASDAQ:GOOGL) overall revenue, Sheridan argued that the products demonstrate the company’s ability to compete effectively in the smartphone and wearable markets.
More importantly, he highlighted new AI-driven features such as Magic Cue and Gemini-branded generative tools, which enhance consumer experiences and strengthen Google’s positioning in AI services.
Sheridan sees these innovations as addressing investor concerns around AI monetization and believes they will serve as important growth drivers, reinforcing his positive outlook on Alphabet Inc.’s (NASDAQ:GOOGL) stock.
Alphabet Inc. (NASDAQ:GOOGL) is the parent company of Google and a pioneer in internet-related services and products, including online advertising technologies, search engines, cloud computing, software, and hardware.
While we acknowledge the potential of GOOGL 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 GOOGL and that has 100x upside potential, check out our report about this cheapest AI stock.
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