In this article, we will discuss: 9 Most Profitable Tech Stocks to Buy Right Now.
On May 8, CNBC reported that American technology firms offer their most attractive valuations in years after solid earnings growth decreased elevated multiples, based on the Morningstar and FactSet data. Morningstar reported that the artificial intelligence theme is trading at its lowest price since 2019, making it a “fantastic entry point.” Its chief equity strategist, Michael Field, said “AI isn’t a bubble that’s going to burst anytime soon,” citing stable fundamentals and strong semiconductor demand. FactSet data showed that the sector’s future price-to-earnings ratio hit 30 times in October 2025 before falling as earnings rose.
Analysts raised concerns about spending sustainability, with Saxo Bank predicting combined capital expenditure at $725 billion in 2026, up from $670 billion in previous estimates. Founder of the investment consultancy Portfolio Thinking. Dan Kemp said that investors must justify sustained “supranormal returns,” while Sophie Huynh, portfolio manager at BNP Paribas Asset Management, cautioned that adoption may be limited due to a lack of processing tokens.
With that said, here are the 9 Most Profitable Tech Stocks to Buy Right Now.
Source: Seagate
Methodology:
We used screeners to identify the Most Profitable Tech Stocks that reported operating and net profit margins exceeding 20%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the finalized stocks in ascending order by net profit margin.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
9. Universal Display Corporation (NASDAQ:OLED)
Net Profit Margin: 34.08%
Operating Margin: 30.06%
On May 4, Citi lowered its price target on Universal Display Corporation (NASDAQ:OLED) to $100 from $105. It retained a “Neutral” rating on the shares.
On April 30, Universal Display Corporation (NASDAQ:OLED) reported revenue of $142.2 million for the Q1 of 2026, dropping from $166.3 million the last year, the firm claimed. Material sales produced $83.7 million, while royalty and license fees provided $54.2 million. Both declined because of changes in client mix and reduced unit volume, based on the report.
The company had an operating income of $42.8 million, dipping from $69.7 million, and a gross margin of 75%, down from 77%. Net income was $35.9 million, or $0.76 per diluted share, down from $64.4 million, or $1.35 per share, according to the firm.
Chief Financial Officer Brian Millard said, “near-term market conditions have become more measured.” The company expected Gen 8.6 capacity additions in Korea and China.
Universal Display Corporation (NASDAQ:OLED) is particularly skilled in the research, development, and sale of organic light-emitting diode technologies and materials for use in displays and solid-state lighting systems.
