In this article, we will take a look at the 5 Most Profitable Tech Stocks to Buy Right Now. For a deeper discussion and an extended list, please see the 9 Most Profitable Tech Stocks to Buy Right Now.
Source: Micron Technology
5. Microsoft Corporation (NASDAQ:MSFT)
Net Profit Margin: 39.34%.
Operating Margin: 46.33%
On May 10, Reuters, citing Bloomberg News, reported that Microsoft Corporation (NASDAQ:MSFT)’s East Africa data center project has stalled as talks with Kenya broke down over guaranteed payment demands.
Bloomberg News, citing people familiar with the matter, reported that Microsoft Corporation (NASDAQ:MSFT) and G42 asked Kenya to commit to annual capacity payments. However, negotiations faltered when the government could not meet the requested guarantees. The project traces back to May 2024, when Microsoft Corporation (NASDAQ:MSFT) partnered with G42 to invest $1 billion in a Kenya-based facility. It was announced during President William Ruto’s visit to Washington under the Biden administration, Reuters said.
Plans called for a geothermal-powered site delivering Azure cloud access across East Africa. Bloomberg reported the companies could scale back the project.
Principal Secretary at Kenya’s Ministry of Information, John Tanui, told Bloomberg the project “is not failed or withdrawn” and said its scale “still requires some structuring,” while noting ongoing discussions around power requirements. Reuters said it was not able to immediately confirm Bloomberg’s report.
Microsoft Corporation (NASDAQ:MSFT) is one of the world’s biggest technology companies. The products include the Windows operating system, Microsoft 365 productivity tools, Azure cloud services, LinkedIn, and even Xbox gaming.
4. PTC Inc. (NASDAQ:PTC)
Net Profit Margin: 41.57%
Operating Margin: 41.62%
On May 8, Citi raised its price target on PTC Inc. (NASDAQ:PTC) to $155 from $146. It kept a “Neutral” rating on the shares.
On May 6, PTC Inc. (NASDAQ:PTC) reported revenue of $774 million for Q2 2026, rising 22% YoY, while operating cash flow reached $321 million and free cash flow hit $318 million, both up by 14%. ARR grew to $2.365 billion, with constant currency ARR excluding divested businesses growing 8.5%, the company said.
Chief Executive Officer Neil Barua said PTC Inc. (NASDAQ:PTC) “delivered solid financial results” and added that its go to market transformation “continues to gain traction,” showing growing customer interest in AI. CFO Jen DiRico said the firm used about $625 million for share repurchases in the quarter and targets roughly $1.2 billion to $1.3 billion in fiscal 2026 buybacks.
PTC Inc. (NASDAQ:PTC) guided fiscal 2026 revenue to $2.58 billion-$2.82 billion and reaffirmed ARR growth outlook of 7.5% to 9.5%.
PTC Inc. (NASDAQ:PTC) is a global software firm. Its products include Windchill, Creo, ThingWorx, Vuforia, Codebeamer, Arbortext, Arena, and Onshape.
3. Palantir Technologies Inc. (NASDAQ:PLTR)
Net Profit Margin: 43.67%
Operating Margin: 46.18%
On May 13, 2026, Reuters reported that US District Judge Paul Oetken ordered Palantir Technologies Inc. (NASDAQ:PLTR) to arbitrate claims accusing three former engineers of using confidential information to build rival firm Percepta AI. The District Judge rejected the company’s effort to keep the case in court.
Oetken said Palantir Technologies Inc. (NASDAQ:PLTR) could not bypass arbitration by seeking just an injunction, writing that the contractual exception applied solely to enforcing arbitration itself, not underlying employment-related disputes, Reuters reported.
The company alleges CEO Hirsh Jain, co-founder Radha Jain, and Joanna Cohen accessed source code and customer data, then breached agreements protecting that information, Reuters said.
The defendants pushed for arbitration in March, noting employment agreements requiring such disputes to proceed outside court.
In earlier rulings, Oetken barred Hirsh Jain and Radha Jain from recruiting Palantir Technologies Inc. (NASDAQ:PLTR) staff and restricted Cohen from violating confidentiality terms, while allowing work at Percepta, Reuters reported.
Palantir Technologies Inc. (NASDAQ:PLTR) builds and uses software platforms that act as central operating systems for its customers. It operates in the Commercial and Government segments.
2. InterDigital, Inc. (NASDAQ:IDCC)
Net Profit Margin: 44.20%
Operating Margin: 40.05%
On April 30, InterDigital, Inc. (NASDAQ:IDCC) reported first quarter 2026 figures topped guidance, reporting revenue, adjusted EBITDA, and EPS above internal targets while reaffirming full year outlook.
CEO Liren Chen said the company signed six agreements, including a Xiaomi renewal. He added that those deals pushed performance beyond expectations and extended licensing momentum. The company posted annualized recurring revenue rising 13% YoY to $567.2 million, with smartphone ARR soaring by 18% to $491.8 million.
InterDigital, Inc. (NASDAQ:IDCC) reported $63.6 million in catch-up revenue. The firm also noted that operating expenses rose $44.5 million due to higher revenue-sharing costs tied to the LG agreement and higher IP enforcement spending. Chen revealed that the cumulative contract value reached $4.7 billion over five years, stating the firm now licenses the top three smartphone vendors through the decade end.
The company said it reaffirmed 2026 guidance and projected second-quarter revenue of $139 million to $143 million, alongside full-year revenue of $675 million to $775 million.
InterDigital, Inc. (NASDAQ:IDCC) is a global research and development corporation dealing with wireless, video, artificial intelligence, and related technologies. It is primarily engaged in the creation and development of communications and entertainment products and services.
1. NVIDIA Corporation (NASDAQ:NVDA)
Net Profit Margin: 55.60%
Operating Margin: 65.02%
On May 13, 2026, Reuters reported that NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang will join Donald Trump on a Beijing trip, raising expectations that stalled H200 chip sales to China could advance.
Reuters, citing a source, said Trump called Huang after media reported his absence from the original executive list, after which reporters saw Huang board Air Force One in Alaska.
An NVIDIA Corporation (NASDAQ:NVDA) spokesperson said Huang will attend “to support America and the administration’s goals,” White House spokesman said that scheduling changes enabled his participation, Reuters reported. A person at a major Chinese cloud company told Reuters that Huang’s presence signals potential progress. A server company source said it could help move the process forward.
Reuters reported that no H200 chips have reached Chinese buyers despite prior U.S. approval. Commerce Secretary Howard Lutnick cited challenges securing Chinese government permissions. Chris McGuire said growing chip sales could narrow the U.S. lead in artificial intelligence.
NVIDIA Corporation (NASDAQ:NVDA) designs and manufactures computer graphics processors, chipsets, and related multimedia applications. It functions in 2 segments: graphics processing unit and compute and networking.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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