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.
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. (NASDAQ:DAVE) 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. (NASDAQ:DAVE) 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. (NASDAQ:DAVE) 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. (NYSE:ANET) 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. (NYSE:ANET) 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. (NASDAQ:CHKP) 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. (NASDAQ:CHKP) 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. (NASDAQ:CHKP) establishes and distributes software and hardware solutions for information security. Its products consist of Quantum, CloudGuard, Harmony, and Infinity-Vision.
While we acknowledge the potential of CHKP 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 CHKP and that has 100x upside potential, check out our report about the cheapest AI stock.
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