Profitability has become increasingly concentrated among companies controlling the infrastructure, software, and platforms supporting the digital economy, and investors are increasingly looking towards the most profitable stocks of the past five years to make sense of the ongoing market trends. Artificial intelligence has accelerated this trend, creating enormous demand for advanced semiconductors, memory chips, and cloud computing capacity. Meanwhile, digital advertising, enterprise software, consumer technology, and financial services continue to generate substantial earnings through established customer relationships and recurring revenue.
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The semiconductor industry has emerged as a particularly significant beneficiary. Companies such as NVIDIA, Micron, and SK hynix are capitalizing on demand for AI computing and memory, while Taiwan Semiconductor Manufacturing Company profits from manufacturing the advanced chips used across the industry. However, these businesses are exposed to different risks. Memory manufacturers depend heavily on supply and pricing conditions, while chip designers must sustain demand for increasingly expensive computing systems. Check out our list of the 10 Oversold AI Stocks: Where Wall Street Analysts Are Spotting 50%+ Upside.
Cloud computing presents a different financial equation. Amazon, Microsoft, and Alphabet are generating substantial revenue from businesses purchasing digital infrastructure, but expanding their computing capacity requires enormous investment. According to Reuters, second-quarter S&P 500 earnings were on track to increase 52% year over year in 2026, supported by a 74% profit jump in the technology sector. This is compared with 33% when substantial investment-related gains were excluded, according to Tajinder Dhillon, head of earnings research at LSEG. The difference illustrates why reported net income does not always reflect recurring operating profitability. Also take a look at the 10 Stocks You Are Selling and Insiders Are Buying.
For investors, high earnings also do not necessarily make a stock attractive. A company can continue increasing profits while delivering disappointing shareholder returns if its valuation already assumes even faster growth. Conversely, companies with more modest earnings growth may offer attractive opportunities when expectations are sufficiently restrained.
Against this backdrop, we examine ten highly profitable stocks, focusing on the sources of their earnings, the sustainability of their profitability, and the evidence for continued income growth.
Our Methodology
For this list, we shortlisted stocks listed on US exchanges and calculated their cumulative net income over five years using Yahoo Finance’s Net Income figures. We added annual net income for fiscal 2022 through 2026 where available, using trailing twelve-month (TTM) net income as an approximation for 2026. Since TTM periods can overlap with previously reported annual results, these totals are estimates.
For foreign companies, we converted earnings into US dollars using Yahoo Finance exchange rates. The stocks are also popular among analysts and elite hedge funds, according to Insider Monkey’s Q2 2026 database, and are arranged in ascending order of their cumulative net income.
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10 Most Profitable Stocks of the Past 5 Years
10. ExxonMobil Holdings Corporation (NYSE:XOM)
5-Year Net Income: $187.03 billion
Number of Hedge Funds: 96
ExxonMobil Holdings Corporation (NYSE:XOM) earned $55.74 billion in 2022, nearly twice its $28.84 billion profit in 2025. The difference highlights how heavily the company’s historical profitability has depended on favorable commodity markets, with annual earnings declining despite continued investment in production capacity.
However, Exxon has made measurable progress in strengthening its underlying operations. Record Permian production in the second quarter of 2026 and continued expansion in Guyana have increased its production capacity, while cumulative structural cost savings reached $16.3 billion. These improvements are significant because higher production efficiency and lower operating costs can support profitability without requiring a corresponding increase in oil prices. Read more about Exxon’s dividend here.
Nevertheless, Exxon’s earnings remain sensitive to commodity prices and refining margins. Its second-quarter performance benefited from unusually strong refining conditions, illustrating how external market developments can substantially influence reported profits. The significant factors to note for investors are earnings growth supported by improvements in production efficiency and profitability driven by favorable market conditions, particularly when assessing whether Exxon’s historical earnings are sustainable.
9. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
5-Year Net Income: 7.23 trillion TWD (≈$221.92 billion)
Number of Hedge Funds: 249
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) benefits from its position as the world’s largest contract chipmaker, manufacturing advanced semiconductors for customers including NVIDIA and Apple. Unlike chip designers, TSMC earns its revenue through manufacturing, allowing it to benefit from demand across multiple technology companies.
Its profitability has strengthened considerably as AI processors require increasingly sophisticated manufacturing processes. The company’s third-quarter 2026 net income and diluted EPS both increased 68.7%, supported by demand for advanced chips. Revenue for the quarter also rose 50.9% year-over-year, and reached $46.72 billion in US dollar terms, up 41.2% year-over-year.
Continued demand for advanced semiconductor manufacturing provides a foundation for further earnings growth. However, TSMC faces significant investment requirements as it expands advanced production technologies and manufacturing capacity internationally. Moving into fiscal Q4 2026, management expects the company to be supported by a continued strong demand for its process technologies, which includes a ramp-up of its 2-nanometer technology. So is TSM a good stock to buy, and is its valuation justified? Read the verdict here.
TSMC’s earnings trajectory, however, depends not only on AI-related orders but also on manufacturing efficiency, capacity utilization, and whether demand remains strong enough to absorb the costs of expansion. It expects revenue for fiscal Q4 2026 to be between US$52.3 billion and US$54.3 billion.
8. Nvidia Corporation (NASDAQ:NVDA)
5-Year Net Income: $236.82 billion
Number of Hedge Funds: 285
NVIDIA Corporation (NASDAQ:NVDA) has become one of the largest beneficiaries of global AI infrastructure spending, with its processors and networking products forming an essential component of advanced computing systems. Its exceptional profitability reflects both accelerating demand and strong product margins. In the second quarter of fiscal 2027, NVIDIA generated $89 billion in data center revenue, an increase of 117% year over year and beating estimates of $85.08 billion, according to Reuters.
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Unlike companies building data centers, NVIDIA generates revenue by supplying the computing technology required for those investments. This has enabled the company to capture substantial earnings as cloud providers and AI developers expand infrastructure. The outlook remains strong. According to Reuters, NVIDIA forecast approximately 70% revenue growth for fiscal year 2028. Nvidia and AWS also plan to deploy 2 million additional GPUs in 2027 and 2028.
Nevertheless, sustaining its margins will require continued demand for premium computing products as competition and component costs evolve. NVIDIA’s earnings growth has been exceptional, but that performance alone does not establish whether its shares offer attractive returns at prevailing valuations, particularly if the price already reflects substantial future growth.
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