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.
Photo by Pascal Bernardon on Unsplash
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.
10. Adobe Inc. (NASDAQ:ADBE)
Net Income (TTM): $7.13 billion
Operating Margin (TTM): 36.63%
Number of Hedge Fund Holdings: 88
Adobe Inc. (NASDAQ:ADBE) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 26, UBS trimmed its price target on the stock to $340 from $375, while keeping a Neutral rating.
The revision followed Baird’s adjustment to the stock on January 14 when it slashed the price target on the shares to $350 from $410 and reiterated a Neutral rating.
Earlier on January 13, Oppenheimer downgraded Adobe Inc. (NASDAQ:ADBE) to Perform from Outperform, citing reduced growth in Digital Media. The firm had anticipated AI business momentum to spur growth in the business, but the results did not meet expectations.
While Oppenheimer analysts led by Brian Schwartz see opportunities in the near-term for the stock, they note that a challenging operating environment is likely to impede share price performance this year. They were quoted as saying the following in a research note to investors:
“In our view, Adobe has good medium-term opportunities and is a cheap stock. However, a challenging operating environment during the AI technology transition leading to uninspiring and decelerating top-line growth, inconsistent execution with product cycles, durability concerns about the moat, lackluster investor interest for owning software names, and down y/y operating margin guidance in FY26 will likely weigh negatively on the sentiment for the company’s opportunities this year, and limit near-term upside for ADBE shares.”
Despite the recent price target cuts, the stock is a Moderate Buy, with a one-year average share price target of $445.76, representing an upside of 52%, as of the close of business on January 30.
Adobe Inc. (NASDAQ:ADBE) is a global technology company that offers a range of web design tools, digital art, content creation, and related services. It is best known for its Adobe Acrobat and Photoshop image-editing tools.
9. Gilead Sciences, Inc. (NASDAQ:GILD)
Net Income (TTM): $8.11 billion
Operating Margin (TTM): 39.09%
Number of Hedge Fund Holdings: 61
Gilead Sciences, Inc. (NASDAQ:GILD) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 27, Truist Securities lifted its price target on the stock to $145 from $140, while maintaining a Buy rating.
According to Tipranks, Truist told investors in a research note that it was revising estimates for YEZTUGO, a prescription drug to lower HIV-1 risk, heading into fourth-quarter earnings. The firm is also adjusting certain timelines following recent updates on upcoming launches, including BIC/LEN and Hepcludex in the United States.
On the same day, Citigroup also provided an update on Gilead Sciences, Inc. (NASDAQ:GILD). The firm lifted its price target on the stock to $156 from $140, while keeping a Buy rating.
Citi’s adjustment came as part of the firm’s broader Q4 preview of biopharmaceutical stocks. The bank expects achievable estimates and reduced policy risk to create a promising environment for the group this year.
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company engaged in the development of medicines to prevent and treat various life-threatening diseases, including HIV, viral hepatitis, and cancer.
8. Netflix, Inc. (NASDAQ:NFLX)
Net Income (TTM): $10.98 billion
Operating Margin (TTM): 29.49%
Number of Hedge Fund Holdings: 154
Netflix, Inc. (NASDAQ:NFLX) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 27, Freedom Capital Markets upgraded the stock to Buy from Hold, with a price target of $104.
The adjustment followed the company’s fourth-quarter results, which beat Wall Street’s estimates for both revenue and earnings, driven mainly by an 8% increase in membership to 325 million subscribers from late 2024. Another highlight of the quarter was the streaming giant’s advertising revenue, which grew more than 2.5x to over $1.5 billion.
Based on the recommendations of 40 analysts, the stock is a Moderate Buy with a one-year average share price target of $114.79, representing an upside of 37.49% as of the close on January 30.
In other news, on January 20, Netflix, Inc. (NASDAQ:NFLX) announced that it had revised the agreement with Warner Bros. Discovery (WBD) for the latter’s pending acquisition to an all-cash transaction, as part of efforts to close the doors on Paramount’s rival offer. The takeover price would remain $27.75 per WBD share.
Netflix, Inc. (NASDAQ:NFLX) is a global entertainment company offering TV series, documentaries, movies, and games across multiple languages and genres.
7. Micron Technology, Inc. (NASDAQ:MU)
Net Income (TTM): $11.91 billion
Operating Margin (TTM): 32.55%
Number of Hedge Fund Holdings: 105
Micron Technology, Inc. (NASDAQ:MU) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 27, Mizuho hiked its price target on the stock to $480 from $390, while maintaining an Outperform rating.
According to a report on TipRanks, the firm anticipates improved revenues and margins in 2026 for companies in the memory group. Mizuho noted that NAND prices could rise by about 330% in 2026 compared to last year and increase another 50% in 2027, with production largely remaining flat, prompting it to lift its price target.
In related news, William Blair initiated coverage on the stock on January 22 with an Outperform rating, citing the company’s position as a major memory supplier. The firm believes that Micron Technology, Inc. (NASDAQ:MU) is well placed to gain with demand comfortably outpacing memory supply.
Given this factor, William Blair expects the company’s non-GAAP EPS to expand by over 275% in the next couple of years.
Micron Technology, Inc. (NASDAQ:MU) manufactures memory and storage products that are widely used in servers, smartphones, tablets, and laptops.
6. Broadcom Inc. (NASDAQ:AVGO)
Net Income (TTM): $23.13 billion
Operating Margin (TTM): 41.27%
Number of Hedge Fund Holdings: 183
Broadcom Inc. (NASDAQ:AVGO) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 27, Bank of America Securities analyst Vivek Arya reiterated the firm’s Buy rating on the stock, according to a report on TipRanks.
This is a reaffirmation of the bank’s previous update on the stock around mid-December, when it lifted the price target to $500 from $460, citing strong prospects of AI growth.
In related news, RBC Capital Markets analyst Srini Pajjuri initiated coverage of Broadcom Inc. (NASDAQ:AVGO) on January 15 with a Sector Perform rating and a $370 price target.
In a research note to investors, the analyst cited strong momentum for TPUs in the short term, while adding that there was some uncertainty around the magnitude of the opportunities from OpenAI and Anthropic. Moreover, Pajjuri justified the Sector Perform rating, saying that the stock was trading at a 25% premium to Nvidia.
Based on recommendations from 30 analysts, the stock is a Strong Buy, with a one-year average share price target of $457.75, representing 38% upside as of January 30.
Broadcom Inc. (NASDAQ:AVGO) is a leading developer, manufacturer, and supplier of semiconductor and infrastructure software products.
5. Meta Platforms, Inc. (NASDAQ:META)
Net Income (TTM): $60.46 billion
Operating Margin (TTM): 41.44%
Number of Hedge Fund Holdings: 273
Meta Platforms, Inc. (NASDAQ:META) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 29, Cantor Fitzgerald analyst Deepak Mathivanan lifted the firm’s price target on the stock to $860 from $750, while maintaining an Overweight rating.
The adjustment follows the company’s fourth-quarter earnings results, which topped Wall Street’s estimates. Revenue came in at $59.89 billion, beating forecasts of $58.59 billion, while EPS stood at $8.88 against consensus expectations of $8.23 per share.
Meta Platforms, Inc. (NASDAQ:META) expects sales in the first quarter of FY26 to be between $53.5 billion and $56.5 billion, which is ahead of estimates of $51.41 billion. Full-year expenses are projected to be in the range of $162 billion and $169 billion. Capital expenditure in 2026 is expected to be between $115 billion and $135 billion, above analyst forecasts of $110.7 billion and nearly double the amount spent last year.
Cantor Fitzgerald noted the strong quarterly results and encouraging sales forecast for the ongoing quarter in its research note to investors. The analyst believes that while margins and free cash flow may get squeezed due to increased capital expenditure, he still expects operating income to expand, with AI momentum likely to drive attractive returns.
Based on the recommendations of 44 analysts, the stock is a Strong Buy with a one-year average share price target of $861.87, representing an upside of 20% as of the close on January 30.
Meta Platforms, Inc. (NASDAQ:META) is one of the world’s largest technology companies. It operates several popular social media platforms, including Facebook, WhatsApp, Instagram, and Threads.
4. NVIDIA Corporation (NASDAQ:NVDA)
Net Income (TTM): $99.20 billion
Operating Margin (TTM): 58.84%
Number of Hedge Fund Holdings: 234
NVIDIA Corporation (NASDAQ:NVDA) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. The company is in talks to invest up to $30 billion in OpenAI, according to a report from The Information on Wednesday.
It is already an important stakeholder in the ChatGPT maker with its chips powering the company’s AI models. According to the report, Microsoft has also held discussions about investing under $10 billion, while Amazon is considering a potential investment of over $20 billion.
According to Reuters, NVIDIA Corporation (NASDAQ:NVDA) did not immediately respond to requests for a comment on the report. In September 2025, the company announced plans to invest up to $100 billion in OpenAI and provide it with data center chips.
NVIDIA continues to be a popular stock among investors as well, with 234 hedge funds holding a stake in the company, according to Insider Monkey’s database for Q3 2025.
It is also a popular stock on analysts’ radar and carries a Strong Buy rating, with a one-year average share price target of $262.79, representing 38% upside as of January 30.
Recent ratings include Morgan Stanley reiterating an Overweight rating on the stock, with a $250 price target, on January 29. Earlier, on January 16, Jefferies raised its price target to $275 from $250 while maintaining a Buy rating on the shares.
NVIDIA Corporation (NASDAQ:NVDA) is a full-stack computing infrastructure company. It is the go-to company for firms looking for GPUs and semiconductors as they increase spending on artificial intelligence.
3. Apple Inc. (NASDAQ:AAPL)
Net Income (TTM): $117.78 billion
Operating Margin (TTM): 32.38%
Number of Hedge Fund Holdings: 166
Apple Inc. (NASDAQ:AAPL) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. The tech giant has acquired Israeli AI audio startup Q.ai, a company representative told the media on Thursday.
While the representative did not reveal a purchase price, the Financial Times, quoting people familiar with the matter, said the deal was worth approximately $2 billion. The Israeli company has developed technology that helps devices analyse facial expressions to understand whispered speech, reports say.
The takeover is set to help shrink the gap between Apple Inc. (NASDAQ:AAPL) and other players like Meta and Alphabet in developing wearable devices, such as smart glasses, for instance, that interact with artificial intelligence.
In other news, Apple Inc. (NASDAQ:AAPL) reported earnings for the first quarter of fiscal 2026 on January 29, topping estimates. Revenue surged 16% year-over-year to $143.8 billion, driven by strong iPhone demand. EPS came in at $2.84, beating expectations of $2.67 per share and up 19% from the prior year’s quarter.
Apple Inc. (NASDAQ:AAPL) is known for its consumer electronics, software, and other related products. Its premium product line, which includes the iPhone, iPad, Mac computers, and a range of accessories, has earned the company widespread acclaim and customer loyalty.
2. Microsoft Corporation (NASDAQ:MSFT)
Net Income (TTM): $119.26 billion
Operating Margin (TTM): 46.67%
Number of Hedge Fund Holdings: 312
Microsoft Corporation (NASDAQ:MSFT) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 29, RBC Capital reiterated its Outperform rating on the stock with a share price target of $640.
According to a CNBC report, the firm noted the company’s recent quarterly results, with revenue, earnings, and operating margins beating estimates. The analyst noted that while the results did not exceed ‘elevated expectations’, further growth and margin upside are expected as Microsoft continues to leverage AI effectively.
Analysts led by Rishi Jaluria further added that Microsoft Corporation (NASDAQ:MSFT) remained the firm’s top large-cap pick. RBC was quoted as saying the following in a research note to investors:
“All in, a strong quarter with solid execution and improving visibility. MSFT’s AI footprint and cloud growth remain underappreciated, in our view, and we would be buyers on the pullback.”
Based on the recommendations of 34 analysts, Microsoft Corporation (NASDAQ:MSFT) is a Strong Buy, with a one-year average share price target of $603.95, representing a 40% upside as of the close on January 30.
In other news, a report on Wednesday said that Microsoft had held talks to invest around $10 billion in OpenAI. The company, a longtime backer of the ChatGPT maker, declined to comment on the matter, Reuters reported.
Microsoft Corporation (NASDAQ:MSFT) develops software, services, devices, and cloud-based solutions and is renowned for products such as Windows, Azure, Office, LinkedIn, and Xbox.
1. Alphabet Inc. (NASDAQ:GOOGL)
Net Income (TTM): $124.25 billion
Operating Margin (TTM): 32.65%
Number of Hedge Fund Holdings: 243
Alphabet Inc. (NASDAQ:GOOGL) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. Based on the recommendations of 30 analysts, the stock is a Strong Buy, with a one-year average share price target of $351.37, representing a 4% upside as of the close on January 30.
Recent updates include Roth Capital’s January 27 reiteration of a Buy rating and a price target lift to $365 from $310 ahead of the company’s Q4 FY25 earnings call on February 4, in which the firm expects the tech giant to beat consensus estimates.
According to TipRanks, Roth Capital also noted several upcoming opportunities for Alphabet Inc. (NASDAQ:GOOGL) during the first half of 2026. These include TPU partnerships, Waymo launches, user growth for its Gemini App, and potential news related to Gemini 4.0.
While the firm acknowledged that there would be tougher comparisons during the second half of the year, the analyst believes events like the Winter Olympics, the FIFA World Cup, and elections would help in counteracting the year-over-year comparison.
Earlier in the week, on January 26, KeyBanc hiked its price target on Alphabet Inc. (NASDAQ:GOOGL) to $360 from $330 while keeping an Overweight rating. The firm’s analyst Justin Patterson believes the company stands to gain from the AI product cycle this year.
In other news, the BBC reported this week that the company was settling a lawsuit accusing it of recording private conversations through its Google Assistant by agreeing to a payment of $68 million. The settlement was filed in a federal court in California on January 23.
Alphabet Inc. (NASDAQ:GOOGL) owns several notable platforms, including Google Search, Google Maps, Gmail, and YouTube. The company is also known for pioneering work and research in cloud computing, quantum computing, and artificial intelligence.
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.
READ NEXT: 10 Best Defense Stocks to Buy in the S&P 500 and 14 Best Booming Stocks to Buy Right Now.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
