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 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 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.
8. Dave Inc. (NASDAQ:DAVE)
Net Profit Margin: 37.21%
Operating Margin: 38.28%
On May 7, Keefe Bruyette raised its price target on Dave Inc. (NASDAQ:DAVE) to $340 from $330, maintaining an Outperform rating, TheFly reported.
On May 5, Dave Inc. reported revenue of $158.4 million for the first quarter of 2026 results with a 47% growth year over year, the company said. Extending that momentum, the company said MTM grew 18%, and ARPU rose 24%, while net monetization reached 5.1%, its highest level in over four years.
Dave Inc. had net income of $57.9 million, up 101% year over year. It paired that with adjusted EBITDA of $69.3 million, going up by 57%. At the same time, the company said its 28-day past due rate fell to 1.69%, marking the lowest Q1 level in its history. Founder and CEO Jason Wilk said “record credit performance” and sustained execution fuelled the quarter, noting demand despite seasonal refund dynamics.
Separately, the company said it deployed about $195 million in share repurchases and raised its 2026 revenue, adjusted EBITDA, and adjusted diluted EPS guidance.
Dave Inc. is a digital banking services provider. It includes a budgeting tool, the flagship ExtraCash, and Dave Banking.
7. Arista Networks, Inc. (NYSE:ANET)
Net Profit Margin: 38.32%
Operating Margin: 42.74%
On May 7, Barclays bumped up the price target for Arista Networks, Inc. (NYSE:ANET) to $195 from $184. It retained an “Overweight” rating on the stock.
On May 5, Arista Networks, Inc. reported revenue of $2.709 billion for Q1 2026, going up by 35.1% year over year and 8.9% sequentially, the company said. It had $1.69 billion in operating cash flow alongside that growth.
The company held margins flat YoY, with GAAP and non-GAAP operating margins of 42.7% and 47.8%, respectively. Meanwhile, Arista extended earnings growth, with GAAP EPS of $0.80 and non-GAAP EPS of $0.87, up from $0.64 and $0.66 a year earlier.
CFO Chantelle Breithaupt said the company delivered “35% revenue growth alongside $0.87 non-GAAP EPS,” with disciplined execution despite macro and supply chain volatility. CEO Jayshree Ullal said that the firm’s results and net promoter score of 89 signal a “strong start” for 2026.
Arista Networks, Inc. creates, promotes, and sells cloud networking technologies. Its solutions include EOS, a set of network applications, and Gigabit Ethernet switching and routing platforms.
6. Check Point Software Technologies Ltd. (NASDAQ:CHKP)
Net Profit Margin: 38.37%.
Operating Margin: 27.69%
On May 4, BMO Capital reduced its price target for Check Point Software Technologies Ltd. (NASDAQ:CHKP) to $135 from $210. It maintained an “Outperform” rating on the shares, citing weak demand metrics and uncertainty around the second half of FY26 revenue build. The firm also told investors the company will likely remain “in the penalty box” until it shows clearer growth improvement.
On April 30, Check Point Software Technologies Ltd. reported $668 million in revenue for the first quarter of 2026 with a 5% growth YoY. Subscription revenue increased by 11% to $323 million, the firm reported. The company’s GAAP operating income was $185 million with 28% margins, while its non-GAAP operating income was $265 million with a 40% margin.
Check Point Software Technologies Ltd. reported GAAP earnings per share of $1.81, a 5% rise, and non-GAAP EPS of $2.50, a 13% increase. CEO Nadav Zafrir said product revenue obstacles from go to market changes, while subscription demand remained strong across email security, exposure management, and SASE.
Check Point Software Technologies Ltd. establishes and distributes software and hardware solutions for information security. Its products consist of Quantum, CloudGuard, Harmony, and Infinity-Vision.
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 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 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 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. 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. “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. guided fiscal 2026 revenue to $2.58 billion-$2.82 billion and reaffirmed ARR growth outlook of 7.5% to 9.5%.
PTC Inc. 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. 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. staff and restricted Cohen from violating confidentiality terms, while allowing work at Percepta, Reuters reported.
Palantir Technologies Inc. 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. 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. 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 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 designs and manufactures computer graphics processors, chipsets, and related multimedia applications. It functions in 2 segments: graphics processing unit and compute and networking.
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