12 Most Profitable Tech Stocks to Buy

7. Applied Materials Inc. (NASDAQ:AMAT)

TTM Net Income as of December 4: $6.99 billion

TTM Net Income Margin as of December 4: 24.67%

Number of Hedge Fund Holders: 89

Applied Materials Inc. (NASDAQ:AMAT) is one of the most profitable tech stocks to buy. On December 4, TD Cowen analyst Krish Sankar raised the firm’s price target on Applied Materials to $315 from $260 and maintained a Buy rating on the shares. The firm believes the company is currently at the intersection of two major market uptrends: one in the DRAM sector and another in leading-edge Foundry.

Earlier in its Q4 2025 earnings report, the company disclosed achieving a revenue of $28.4 billion for the full year 2025, representing a 4% increase from 2024. The Non-GAAP EPS increased by 9% year-over-year. The revenue growth was broad-based across the company’s segments. Semiconductor Systems revenue was up 4%, setting a record for both foundry systems revenue and DRAM sales outside China. Applied Global Services revenue grew 3% to a record $6.4 billion. Display revenue rose by 20%.

For FQ1 2026, Applied Materials anticipates a revenue of ~$6.85 billion and Non-GAAP EPS of ~$2.18. The company is positioned to benefit from the AI computing boom, which is driving investment in advanced semiconductors and wafer fab equipment/WFE. Applied Materials is confident in its ability to capture more than 50% of its served market in these segments, supported by deep co-innovation relationships that provide visibility into future technology nodes, sometimes extending to over 2 years.

Applied Materials Inc. (NASDAQ:AMAT) provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company operates through three segments: Semiconductor Systems, Applied Global Services, and Display.