This article looks at the 12 Most Profitable NASDAQ Stocks to Buy Right Now.

2025 was another stellar year for the markets, marking the third successive instance of double-digit returns for the indices. The S&P 500 Index gained 17.9% during the period, while the NASDAQ Composite Index grew 21.2%.

Looking ahead to 2026, while there is some investor concern stemming from ongoing geopolitical conflicts, market experts remain bullish, with a strong focus on earnings.

While speaking with Yahoo Finance last week, Treasury Partners chief investment officer Richard Saperstein discussed market fundamentals, citing waning inflation, a strong economy, and a moderating job market, which he believes set up an ‘excellent backdrop for earnings growth’.

Strategists at BNY Wealth anticipate a broadening of the market this year, driven not just by a few leading tech giants, but also by companies from other sectors, while noting that artificial intelligence remains a major driver of productivity and higher earnings.

BNY also expects the incentives from President Trump’s ‘Big Beautiful Bill’ to drive growth in 2026, as it could cut corporate tax rates by about 3%, according to some estimates, which will help improve the bottom line for companies.

With that said, let’s now head over and discuss some of the most profitable NASDAQ stocks to buy right now.

Our Methodology

We used screeners to identify NASDAQ-listed stocks with operating and profit margins above 20%. From this pool, we selected the top 12 stocks that had the highest trailing twelve-month (TTM) net income. All data is as of the close of business on January 30, 2026. The stocks are listed below in ascending order by net income. Additionally, these stocks draw significant interest from hedge funds. We have included data on the number of hedge funds holding stakes in these companies based on Insider Monkey’s database, as of Q3 2025.

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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

12. Lam Research Corporation (NASDAQ:LRCX)

Net Income (TTM): $6.21 billion

Operating Margin (TTM): 33.76%

Number of Hedge Fund Holdings: 93

Lam Research Corporation (NASDAQ:LRCX) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 28, the company reported strong results for the quarter ending December 2025, topping estimates.

Revenue came in at $5.34 billion, surpassing Wall Street’s expectations of $5.26 billion. Adjusted earnings were logged at $1.27 per share, beating estimates by 10 cents. LRCX’s shares gained 3.2% in extended trading after the results were announced.

Investor sentiment was further strengthened by the company’s forecasts for the quarter ending in March. Lam Research Corporation (NASDAQ:LRCX) anticipates revenue of $5.7 billion for the quarter, within a range of plus or minus $300 million, compared with estimates of $5.34 billion, as soaring AI demand drives higher orders for chipmaking tools.

Moreover, its net income per diluted share is projected to be between $1.25 and $1.45, again surpassing analysts’ forecast of $1.20 per share.

Following the earnings call, several research firms lifted their price targets on the stock on January 29, including Morgan Stanley, Goldman Sachs, Citigroup, and more.

Based on the recommendations of 26 analysts, LRCX is a Strong Buy with a one-year average share price target of $284.18, representing an upside of 15%, as of the close on January 30.

Lam Research Corporation (NASDAQ:LRCX) provides wafer fabrication equipment and services to the global semiconductor industry. The stock is already up 36% YTD in 2026.

11. Applied Materials, Inc. (NASDAQ:AMAT)

Net Income (TTM): $7 billion

Operating Margin (TTM): 30%

Number of Hedge Fund Holdings: 89

Applied Materials, Inc. (NASDAQ:AMAT) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 27, Mizuho analyst Vijay Rakesh upgraded the stock to Outperform from Neutral, citing increased spending in the U.S, Japan, and Taiwan. The firm also hiked its price target to $370 from $275.

This follows Deutsche Bank’s adjustment on January 23 when analyst Melissa Weathers upgraded the stock rating to Buy from Hold and also raised the firm’s price target to $390 from $275.

The bank cited favorable trends concerning wafer fabrication equipment heading into the new year and continuing through 2027. Deutsche Bank also noted that the stock’s current valuation appears at a discount in comparison to peers, with the gap likely to narrow in the future.

Earlier on January 20, Needham analyst Charles Shi lifted the firm’s price target on Applied Materials, Inc. (NASDAQ:AMAT) to $390 from $260, while maintaining a Strong Buy rating on the stock.

The adjustment follows the Needham Growth Conference, where presenters reiterated a bullish outlook on the semicap sector, given the surge in demand over the last three months.

As of the close of business on January 30, AMAT is a Strong Buy with a one-year average share price target of $338.24, representing an upside of 5%.

Applied Materials, Inc. (NASDAQ:AMAT) is a leader in materials engineering solutions engaged in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries.