25 Most Profitable NASDAQ Stocks Today

Published February 20, 2023 at 10:34 am EST Updated August 19, 2026 at 9:24 am EDT

In this article, we will look at the 25 most profitable NASDAQ stocks today.

2022 was one of the worst years for the NASDAQ, primarily because it is dominated by tech, and tech stocks crashed as interest rates climbed. The NASDAQ lost roughly more than one-third of its value in 2022. However, in 2023 things seem to have taken an interesting turn. The NASDAQ has been rising and, as of February 17, the tech-heavy index has gained 13.48% year to date.

“I Think Growth Comes Back and Tech Outperforms”

Is the tech sector making a comeback in 2023? Fundstrat’s head of technical strategy, Mark Newton, thinks so. On February 7, Mark Newton appeared in an interview on CNBC where he discussed why he thinks growth and technology are making a comeback in 2023. Here are some comments from Mark Newton:

“There’s 3 main things for investors to look at. One is that momentum and breadth have improved substantially in the last couple of months. The second is that, we are in seasonally a very bullish period. Pre-election year seasonality for the first quarter is better than any other of the 16 quarters that make up the presidential cycle. The third is that we continue to see pretty excessive bearish sentiment across the board… The near term sentiment has gotten a little more optimistic. However, if we saw anything from recent reports of investor risk, people are very much on the sidelines and we’re seeing very high levels of investor cash. That makes me think that we are in very much a bull market that can continue.”

Mark Newton’s views are remarkably similar to those of billionaire investor Ken Fisher. Newton thinks that the market bottomed somewhere in October 2022 and now we are in a bull market. Newton thinks that technology, which was one of the worst-performing sectors in 2022, is now making a comeback. Newton supported his thesis by elaborating on how the market has “gone from extreme pessimism to now skepticism”. While “we haven’t reached bullishness yet”, according to Mark Newton, “the market’s respecting inflation selling off sharply as well as a pivot potentially with the Fed”.

Mark Newton thinks “both energy and healthcare have a chance of snapping back”. However, he sees tech “being a phenomenally good sector to position in for 2023”. According to Mark Newton, interest rates will “continue to come down over the course of the year” and “that should fuel growth”. Newton thinks “growth comes back and tech outperforms” in 2023, and he also revealed that his year-end target for the S&P 500 is 4,500.

Some of the most profitable NASDAQ stocks today are Meta Platforms, Inc. (NASDAQ:FB), Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL). Let’s now discuss these stocks, among others, in detail.

Photo by Pascal Bernardon on Unsplash

Our Methodology

We screened for companies trading on the NASDAQ. We considered the annual net income as a measure of a company’s profitability. We narrowed down our screen and looked for companies that had a trailing twelve-month net income of greater than $4 billion. We used data from Yahoo Finance to verify each company’s net income and finally picked the 25 companies that had reported the highest annual net income for fiscal 2022. We have ranked these stocks in ascending order of their TTM net income, as of fiscal 2022. Since companies use different fiscal years, we have mentioned the end-date of each company’s fiscal year along with its net income.

Most Profitable NASDAQ Stocks Today

25. CSX Corporation (NASDAQ:CSX)

Number of Hedge Fund Holders: 61

Net Income (TTM) as of December 31, 2022: $4.16 billion

CSX Corporation (NASDAQ:CSX) is an American railroad holding company headquartered in Jacksonville, Florida. On January 25, the company reported strong earnings for the fiscal fourth quarter of 2022 and beat both EPS and revenue estimates. The company reported an EPS of $0.49 and outperformed expectations by $0.02. The company’s revenue for the quarter amounted to $3.73 billion, up 8.84% year over year and ahead of Wall Street consensus by $11.09 million. CSX Corporation is one of the most profitable NASDAQ stocks today, with a net income of $4.16 billion for fiscal 2022.

At the end of Q3 2022, CSX Corporation was a part of 61 investors’ portfolios that held collective stakes worth $4.68 billion in the company. As of December 31, Soroban Capital Partners is the top investor in the company and has disclosed a position worth $1.79 billion.

24. Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN)

Number of Hedge Fund Holders: 43

Net Income (TTM) as of December 31, 2022: $4.33 billion

Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) is a leading American biotechnology company. At the close of Q3 2022, 43 hedge funds held stakes in Regeneron Pharmaceuticals, Inc.. The total value of these stakes amounted to $1.26 billion.

On February 3, Regeneron Pharmaceuticals, Inc. posted market-beating earnings for the fourth quarter of fiscal 2022. The company’s EPS for the quarter amounted to $12.56 and beat EPS estimates by $2.57. Regeneron Pharmaceuticals, Inc. reported an annual net income of $4.33 billion in fiscal 2022. As of February 17, the stock has gained 22.32% over the past 6 months.

As of December 31, AQR Capital Management is the leading investor in Regeneron Pharmaceuticals, Inc. and has disclosed a position worth $221.2 million in the company.

Here is what Bronte Capital had to say about Regeneron Pharmaceuticals, Inc. in its third-quarter 2022 investor letter:

“There have been some bright spots in our long book. Regeneron Pharmaceuticals, Inc.(NASDAQ:REGN), a major position and a stock we wrote up in our June 2021 letter, has been one of the best performing stocks in the S&P 500 this year. Alas it has not been enough to offset some of our weaker stocks, let alone our overweight exposure to the UK (and Europe) which have suffered from both stock and currency weakness. We do not think we are bad at picking stocks on the long side and hope – reasonably we think – for better relative results in the future. Prior to COVID, our longs were markedly better than the index. Unfortunately, if you look at our long book this quarter and since the onset of the COVID pandemic, there is scant evidence that we have added any value by picking stocks to go long.”

23. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 115

Net Income (TTM) as of December 31, 2022: $4.49 billion

For the trailing twelve-month period ending on December 31, 2022, Netflix, Inc. (NASDAQ:NFLX) generated a net income of $4.49 billion. The company’s EPS for Q4 2022 was $0.12 and its revenue for the quarter amounted to $7.85 billion. Netflix, Inc. is one of the most profitable stocks on NASDAQ today. As of February 17, the stock has gained 53.60% over the past 6 months.

At the end of Q3 2022, 115 hedge funds were bullish on Netflix, Inc. and disclosed positions worth $6.66 billion in the company. As of December 31, Eagle Capital Management is the top investor in the company and owns over 5 million shares.

Here is what RiverPark Advisors had to say about Netflix, Inc. in its fourth-quarter 2022 investor letter:

“Netflix, Inc. (NASDAQ:NFLX): NFLX was also a top contributor for 4Q. The company reported better-than-expected subscriber additions for 3Q and provided strong 4Q guidance. Netflix added 2.4 million subscribers in the quarter, beating the Street’s expectation of 1.1 million added subscribers, and management guided to 4.5 million subscriber additions for 4Q, above expectations for 4.1 million.

We believe that 2022 was an inflection year for Netflix as the company became free cash flow (“FCF”) positive during 1Q22 and FCF should scale from here (management guided to $1 billion FCF for 2022). A combination of strategic initiatives, price increases and a stabilization of content investment should position the company for high-single digit annual revenue growth, while driving improved operating margin to more than 25% over the next few years. Revenue grew 6% for 3Q22 and operating margin was 19%, up from 10% in 2018. In addition to its opportunities in TV and movie streaming, the company recently launched a mobile gaming service that opens an additional $100 billion-plus market for future growth.”

In addition to tech giants Meta Platforms, Inc., Alphabet Inc., Microsoft Corporation, and Apple Inc., Netflix, Inc. is also one of the most profitable NASDAQ stocks today.

22. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Holders: 56

Net Income (TTM) as of December 31, 2022: $4.59 billion

On February 2, Gilead Sciences, Inc. (NASDAQ:GILD) reported a strong quarter when it posted earnings for the fourth quarter of fiscal 2022. The company reported an EPS of $1.67 and outperformed EPS expectations by $0.16. The company’s revenue for the quarter amounted to $7.39 billion and beat consensus by $759.39 million. As of February 17, Gilead Sciences, Inc. has returned 39% to investors over the past 12 months.

Gilead Sciences, Inc. is ranked among the most profitable stocks on NASDAQ today, with an annual net income of $4.59 billion for fiscal 2022.

At the end of the third quarter of 2022, 56 hedge funds held stakes in Gilead Sciences, Inc.. The total value of these stakes amounted to $3.63 billion. As of December 31, quant fund Two Sigma Advisors was the largest investor in the company and disclosed a position worth $433.2 million.

Here is what Ariel Investments had to say about Gilead Sciences, Inc. in its third-quarter 2022 investor letter:

“At the stock level, biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) was the top contributor in the quarter based on positive data released in a study evaluating Trodelvy versus comparative chemotherapy in patients with metastatic breast cancer. The detailed findings increased investor confidence the drug would receive incremental approvals for a broader range of breast cancer treatments. Shares also received a boost on news the TAF patent portfolio for HIV drugs will be extended from the middle of this decade through the early 2030s, thereby lengthening the company’s long-term opportunity in the virology market.”

21. Lam Research Corporation (NASDAQ:LRCX)

Number of Hedge Fund Holders: 63

Net Income (TTM) as of June 30, 2022: $4.60 billion

As of February 17, Lam Research Corporation (NASDAQ:LRCX) has returned over 19.64% to investors year to date. With a trailing twelve-month net income of $4.60 billion for fiscal 2022, Lam Research Corporation is one of the most profitable stocks on NASDAQ today.

At the end of Q3 2022, Lam Research Corporation was spotted on 63 investors’ portfolios that disclosed collective positions worth $3.68 billion in the company. As of December 31, Alkeon Capital Management is the largest shareholder in the company and has disclosed a stake worth $253.5 million.

Here is what Renaissance Investment Management had to say about Lam Research Corporation in its third-quarter 2022 investor letter:

“Conversely, we sold our positions in Lam Research Corporation (NASDAQ:LRCX) and Zoetis (ZTS) following a sustained deterioration in fundamental factors. After a qualitative review of Lam Research, we believe the company will face a number of headwinds that could make for an unfavorable risk-reward position, given the highly cyclical nature of its business in a slowing global economy. We are also expecting fundamentals to turn negative as sales and operating profits are poised to decelerate, resulting in negative earnings revisions. While the stock trades at an attractive valuation multiple, we believe that this is more a sign that earnings will decline meaningfully.”

20. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 93

Net Income (TTM) as of November 30, 2022: $4.75 billion

At the close of the third quarter of 2022, 93 hedge funds were eager on Adobe Inc. (NASDAQ:ADBE) and held stakes worth $6.74 billion in the company. As of December 31, Fundsmith LLP is the largest investor in Adobe Inc. and owns more than 2 million shares.

For the fiscal fourth quarter of 2022, Adobe Inc. reported an EPS of $3.60 and outperformed EPS consensus by $0.10. Adobe Inc. generated a net income of $4.75 billion in fiscal 2022. The stock is ranked twentieth on our list of the most profitable NASDAQ stocks today.

Here is what Andvari Associates had to say about Adobe Inc. in its fourth-quarter 2022 investor letter:

“Adobe Inc. (NASDAQ:ADBE) is one of several software companies we own. Its suite of creative products (Photoshop, Illustrator, Acrobat, Lightroom, etc.) are the industry standard for creative professionals. Adobe also has a suite of customer experience products that help other businesses sell more easily to consumers. All of Adobe’s products have high switching costs and sold on a subscription basis.

Adobe’s business qualities enable extremely high margins and predictable, recurring revenues. The company had revenues of $17.6 billion in its last fiscal year with operating margins in the mid-30s. The company has also grown revenues at double-digit rates every year since 2015. Despite a good record of investing in its businesses, it still has an excess of cash on its balance sheet. As such, Adobe has returned cash to shareholders in the form of share buybacks. Since 2015 the company has returned a total of $24.5 billion.”

19. Honeywell International Inc. (NASDAQ:HON)

Number of Hedge Fund Holders: 53

Net Income (TTM) as of December 31, 2022: $4.96 billion

For fiscal Q4 2022, Honeywell International Inc. (NASDAQ:HON) reported an EPS of $2.52 and outperformed EPS estimates by $0.01. The company’s revenue for the quarter amounted to $9.11 billion. With an annual net income of $4.96 billion, Honeywell International Inc. is one of the most profitable NASDAQ stocks today.

Honeywell International Inc. was spotted on 53 investors’ portfolios at the end of Q3 2022. The total stakes of these hedge funds amounted to $1.04 billion. As of December 31, Diamond Hill Capital is the leading investor in the company and has disclosed a position worth $245.4 million.

18. Charter Communications, Inc. (NASDAQ:CHTR)

Number of Hedge Fund Holders: 68

Net Income (TTM) as of December 31, 2022: $5.05 billion

As of February 17, Charter Communications, Inc. (NASDAQ:CHTR) has gained 15.82% year to date and is trading at a PE multiple of 13x. The company’s trailing twelve-month net income for the period ending on December 31, 2022, was $5.05 billion. Charter Communications, Inc. is ranked among the most profitable NASDAQ stocks today.

At the close of the third quarter of 2022, 68 hedge funds were long Charter Communications, Inc. and held stakes worth $3.39 billion in the company. As of December 31, Harris Associates is the leading investor in the company and has disclosed a position worth $1.32 billion.

Here is what Weitz Investment Management had to say about Charter Communications, Inc. in its third-quarter 2022 investor letter:

“Liberty Broadband’s primary asset is a 26% stake in Charter Communications (NASDAQ:CHTR). Charter is not sitting still; the company is adapting via footprint expansion into underserved areas, price-advantaged mobile line growth, and so on. Charter’s hefty free cash flows are valuable in the hands of proven, astute capital allocators. Time will tell, but to paraphrase country music artist Merle Haggard, we do not yet think cable’s good times are really over for good.”

17. Comcast Corporation (NASDAQ:CMCSA)

Number of Hedge Fund Holders: 73

Net Income (TTM) as of December 31, 2022: $5.37 billion

On January 26, Comcast Corporation (NASDAQ:CMCSA) posted remarkable earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $0.82 and outperformed EPS estimates by $0.04. The company’s revenue for the quarter amounted to $30.55 billion and beat market consensus by $196.70 million. Comcast Corporation reported an annual net income of $5.37 billion for fiscal 2022 and is placed seventeenth among the most profitable NASDAQ stocks today.

Comcast Corporation was held by 73 hedge funds at the end of Q3 2022. These funds held collective stakes worth $3.98 billion in the company. As of December 31, First Eagle Investment Management is the top investor in the company and owns more than 32.6 million shares.

Here is what Diamond Hill Capital had to say about Comcast Corporation in its fourth-quarter 2022 investor letter:

“We eliminated our positions in financial services technology company Fidelity National Information Services and media and technology company Comcast Corporation (NASDAQ:CMCSA). With Comcast, uncertainty surrounding broadband growth due to rising competition and lower market activity, as well as the continued deterioration of the traditional media business, led to a less attractive risk/ reward tradeoff and we chose to reallocate that capital to more attractive ideas.”

16. Costco Wholesale Corporation (NASDAQ:COST)

Number of Hedge Fund Holders: 69

Net Income (TTM) as of August 31, 2022: $5.84 billion

At the end of Q3 2022, 69 hedge funds disclosed positions in Costco Wholesale Corporation (NASDAQ:COST). The total stakes of these hedge funds amounted to $4.42 billion.

Costco Wholesale Corporation generated a net income of $5.84 billion for the trailing twelve-month period ending on August 31, 2022. As of February 17, the stock has gained 11.96% year to date.

As of December 31, Ray Dalio’s Bridgewater Associates is the leading shareholder in the company and has disclosed a position worth $427.9 million.

Here is what Madison Funds had to say about Costco Wholesale Corporation in its fourth-quarter 2022 investor letter:

“Costco Wholesale Corporation (NASDAQ:COST) stock fell after November sales results showed a slowing consumer. The slower November sales were followed by a slight first quarter miss with lower-than-expected margins. Costco commented that they are not seeing trade-down but private label penetration has increased modestly. Traffic continues to be positive, and Costco remains well-positioned in a more challenging macro environment due to its strong value proposition.”

15. Applied Materials, Inc. (NASDAQ:AMAT)

Number of Hedge Fund Holders: 67

Net Income (TTM) as of October 31, 2022: $6.52 billion

In fiscal 2022, Applied Materials, Inc. (NASDAQ:AMAT) generated a net income of $6.52 billion. As of February 17, the stock has returned 14.51% to investors over the past 6 months. Applied Materials, Inc. is one of the most profitable NASDAQ stocks today.

At the close of Q3 2022, 67 hedge funds were eager on Applied Materials, Inc. and disclosed positions worth $3.81 billion in the company. As of December 31, Generation Investment Management is the top shareholder in the company and owns over 6.9 million shares.

Here is what Vulcan Value Partners had to say about Applied Materials, Inc. in its fourth-quarter 2022 investor letter:

“Applied Materials, Inc. (NASDAQ:AMAT) is the world’s largest producer of semiconductor manufacturing equipment. Throughout 2022, investors became increasingly concerned about a cyclical downturn in semiconductors and pending trade regulations that would restrict the sale of advanced semiconductor manufacturing equipment to Chinese customers. This uncertainty caused the stock to become oversold, in our opinion. The stock price recovered in the fourth quarter as investors were able to size the impact of export controls and, we believe, as investors increasingly understood the long-term, structural demand for semiconductors and the equipment that produces them.”

14. Amgen, Inc. (NASDAQ:AMGN)

Number of Hedge Fund Holders: 53

Net Income (TTM) as of December 31, 2022: $6.55 billion

Amgen Inc. (NASDAQ:AMGN) is a leading American biotechnology company that specializes in developing and distributing therapeutics for inflammation, oncology/hematology, bone health, cardiovascular disease, and nephrology among others. Amgen, Inc. was a part of 53 investors’ portfolios at the end of Q3 2022. These funds held collective stakes worth $1.55 billion in the company.

For fiscal Q4 2022, Amgen Inc. reported an EPS of $4.09 and generated a revenue of $6.84 billion. The company’s annual net income for fiscal 2022 amounted to $6.55 billion. Amgen Inc. is one of the most profitable stocks on NASDAQ today.

As of December 31, Two Sigma Advisors is the leading investor in Amgen, Inc. and has a position worth $403.7 million in the company.

Here is what Smead Capital Management had to say about Amgen Inc. in its third-quarter 2022 investor letter:

“Two things are very noticeable right off the top. First, sometimes you have to be happy losing less in a bear market environment so that you have more of your capital to grow in the next bull market. We are never really happy losing money. Second, 2022 is likely to be our third year of existence as a fund to lose money for the year. This year would join 2008 and 2018 in this undistinguished category. Our biggest detractors was dominated by Amgen (NASDAQ:AMGN). Consumer/investor fears about media and e-commerce hit WBD and EBAY and profit taking in Amgen came from early 2022 strength.”

13. Sanofi (NASDAQ:SNY)

Number of Hedge Fund Holders: 31

Net Income (TTM) as of December 31, 2022: $6.72 billion

Sanofi (NASDAQ:SNY) is an American pharmaceutical company that is involved in the research, development, and distribution of therapeutic solutions across the globe. The company has three business divisions: Pharmaceuticals, Vaccines, and Consumer Healthcare. As of February 17, Sanofi has gained 16.38% over the past 6 months. Sanofi reported an annual net income of $6.72 billion in fiscal 2022 and is the thirteenth most profitable NASDAQ stock today.

At the end of the third quarter of 2022, 31 hedge funds were long Sanofi and disclosed positions worth $1.42 billion in the company. As of December 31, Adage Capital Management is the top shareholder in the company and owns over 2.5 million shares.

Here is what ClearBridge Investments had to say about Sanofi in its third-quarter 2022 investor letter:

“Health care proved to be the most challenging sector to navigate during the quarter, as several companies were subjected to elevated risk aversion due to possible litigation implications. Two of our top five largest individual detractors for the period were in the health care sector: Sanofi(NASDAQ:SNY) and Bayer (OTCPK:BAYZF). Sanofi, a French pharmaceutical and health care company, saw its share price fall after it was named as a co-defendant in a class action lawsuit alleging that Sanofi and other sellers of the heartburn medication Zantac failed to warn of the drug’s risk of containing a possible carcinogen.”

12. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 69

Net Income (TTM) as of December 31, 2022: $8.01 billion

Semiconductor giant Intel Corporation (NASDAQ:INTC) generated a net income of $8.01 billion in fiscal 2022. For fiscal Q4 2022, Intel Corporation reported an EPS of $0.10 and generated a revenue of $14.04 billion. The stock is one of the most profitable NASDAQ stocks today.

Intel Corporation was held by 69 hedge funds at the close of Q3 2022. The total stakes of these hedge funds amounted to $1.91 billion. As of December 31, D E Shaw is the most prominent investor in the company and has disclosed a position worth $353.7 million.

Here is what ClearBridge Investments had to say about Intel Corporation in its third-quarter 2022 investor letter:

“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”

11. Micron Technology, Inc. (NASDAQ:MU)

Number of Hedge Fund Holders: 74

Net Income (TTM) as of August 31, 2022: $8.68 billion

Micron Technology, Inc. (NASDAQ:MU) is the leader in DRAM technology. For the trailing twelve-month period that ended on August 31, 2022, Micron Technology, Inc. generated a net income of $8.68 billion. The stock is the eleventh most profitable NASDAQ stock today.

At the end of Q3 2022, 74 hedge funds were eager on Micron Technology, Inc. and disclosed positions worth $2.50 billion in the company. As of December 31, Andreas Halvorsen’s Viking Global is the largest investor in the company and has a position worth $417.7 million.

Here is what Claret Asset Management had to say about Micron Technology, Inc. in its third-quarter 2022 investor letter:

“Inflation is still higher than interest rates… not an incentive to save for most people. Either inflation must come down or interest rates have to go up further. Or both. And probably both. Now that they are taking the punch bowl away and the party is over, what happens next? For whatever reason, the stock market seems to always precede the economic reality: Micron reached a high of $98.45 on January 5th, 2022 and is trading at $50.00 today.”

Some of the most profitable tech stocks that are popular among elite money managers include Micron Technology, Inc., Meta Platforms, Inc., Alphabet Inc., Microsoft Corporation, and Apple Inc..

10. Texas Instruments Incorporated (NASDAQ:TXN)

Number of Hedge Fund Holders: 59

Net Income (TTM) as of December 31, 2022: $8.70 billion

At the end of Q3 2022, 59 hedge funds were bullish on Texas Instruments Incorporated (NASDAQ:TXN) and disclosed positions worth $1.78 billion in the company. As of December 31, First Eagle Investment Management is the most prominent investor in the company and has a position worth $604.6 million.

On January 24, Texas Instruments Incorporated posted earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $2.19 and outperformed EPS estimates by $0.16. The company generated a revenue of $4.67 billion and beat consensus by $42.8 million. Texas Instruments Incorporated generated a net income of $8.70 billion in fiscal 2022. The stock is ranked tenth among the most profitable NASDAQ stocks today.

Here is what Diamond Hill Capital had to say about Texas Instruments Incorporated in its third-quarter 2022 investor letter:

“Other top contributors in Q3 included health insurance company Humana, semiconductor manufacturer Texas Instruments Incorporated (NASDAQ:TXN) and home improvement retailer Home Depot. Shares of Texas Instruments outperformed as the COVID lockdowns eased in China, and customers could accept the product shipments leading to an upside in expectations.”

9. PepsiCo, Inc. (NASDAQ:PEP)

Number of Hedge Fund Holders: 72

Net Income (TTM) as of December 31, 2022: $8.91 billion

On February 9, PepsiCo, Inc. (NASDAQ:PEP) released earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $1.67 and beat EPS expectations by $0.02. The company’s revenue for the quarter amounted to $28 billion, up 10.88% year over year and ahead of Wall Street estimates by $1.17 billion.

PepsiCo, Inc. was held by 72 hedge funds at the end of Q3 2022. These funds held collective stakes of $4.82 billion in the company. As of December 31, Fundsmith LLP is the top investor in the company and has a position worth $1.20 billion.

Here is what Lindsell Train had to say about PepsiCo, Inc. in its third-quarter 2022 investor letter:

“At this point, it may help to give a further example of these self-reinforcing moats to illustrate the idea, drawing from the consumer franchises side of our portfolio. In our view, strong consumer brands can similarly exhibit Lindycompatible anti-ageing properties. Consider, that the longer a company invests in its brands through advertising and R&D, the stronger and more resonant they may get. When successful, a self-sustaining feedback loop is established, whereby it becomes ever harder to recreate a heritage-rich brand from scratch, raising barriers to entry, and proportionately increasing its likely lifespan. There are plenty of long-lived portfolio franchises I could reference here, but I’ve gone with PepsiCo (NYSE:PEP); partly because we have good time-series stats on it (beware data bias!) but also, as I hope will become evident, because Pepsi over its 129 years has succeeded in creating some wonderfully deep moats.

With Pepsi Cola you get the flagship soft drinks brand, which is both global and generational, but you also get the Frito-Lay salty snacks portfolio assembled alongside it, claiming nearly 40% of the global market. That’s ten-times greater than the nearest competitor and likely higher than the next 65 competitors combined. These are exceptionally strong global bands with market shares to match; the long-term empirical result being Pepsi’s dividend record which over the past 66 years (as far back as we’ve been able to go) has compounded at an annualised rate of 10%. Pepsi is no ‘in at the ground floor’ start-up today, but it wasn’t six decades ago either. Early growth investor Philip Fisher put it well when in 1958 (two years into Pepsi’s current winning streak) he wrote of “companies which in spite of outstanding prospects of major further growth are so financially strong, with roots going so deep into the economic soil, that they qualify under the general classification of ‘institutional stocks’”. PepsiCo fits this description well…” (Click here to see the full text)

8. Broadcom Inc. (NASDAQ:AVGO)

Number of Hedge Fund Holders: 74

Net Income (TTM) as of October 31, 2022: $11.22 billion

Broadcom Inc. (NASDAQ:AVGO) is one of the most profitable semiconductor stocks on NASDAQ today. For the trailing twelve-month period that ended on October 31, 2022, Broadcom Inc. generated a net income of $11.22 billion. As of February 17, the stock has gained 12.64% over the past 6 months.

At the close of Q3 2022, Broadcom Inc. was spotted on 74 investors’ portfolios that held collective positions worth $4.44 billion in the company. As of December 31, Cantillon Capital Management is the largest shareholder in the company and owns over 1 million shares.

7. Cisco Systems, Inc. (NASDAQ:CSCO)

Number of Hedge Fund Holders: 68

Net Income (TTM) as of July 31, 2022: $11.81 billion

For fiscal 2022, Cisco Systems, Inc. (NASDAQ:CSCO) reported an annual net income of $11.81 billion. The stock is the seventh most profitable NASDAQ stocks today.

On February 15, Cisco Systems, Inc. posted market-beating earnings for the fiscal second quarter of 2023. The company generated a revenue of $13.59 billion, up 6.86% year over year and ahead of market consensus by $179.73 million. The company reported an EPS of $0.88 and outperformed EPS estimates by $0.02.

At the end of Q3 2022, Cisco Systems, Inc. was a part of 68 investors’ portfolios that held collective positions worth $2.78 billion in the company. As of December 31, Two Sigma Advisors is the most prominent investor in the company and has disclosed a position worth $455.7 million.

6. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 88

Net Income (TTM) as of December 31, 2022: $12.58 billion

EV giant Tesla, Inc. (NASDAQ:TSLA) generated a net income of $12.58 billion in fiscal 2022. On January 25, the company posted strong earnings for the fiscal fourth quarter of 2022. Tesla, Inc. reported an EPS of $1.19 and outperformed EPS consensus by $0.08. The company’s revenue for the quarter amounted to $24.32 billion, up 37.24% year over year, and beat market estimates by $17.21 million.

At the close of the third quarter of 2022, 88 hedge funds were bullish on Tesla, Inc. and disclosed stakes worth $7.39 billion in the company. As of December 31, Ken Griffin’s Citadel Investment Group is the largest investor in the company and has a position worth $926.2 million.

Here is what Worm Capital, LLC had to say about Tesla, Inc. in its 2022 annual investor letter:

“Even as rates rose and the macro environment devolved, we believed Tesla, Inc. (NASDAQ:TSLA) was best positioned to grow and thrive, even through a period of extreme uncertainty. They are the market leader in rapidly growing end markets and have spent the past decade growing their competitive advantages and building out physical infrastructure with worldwide reach. While we believe we were right regarding the direction of fundamentals, this was overcome by a vast array of factors we didn’t anticipate that negatively impacted the price.

By and large, Tesla had amazing execution in 2022. They managed to achieve 40% YOY delivery growth. In addition, revenue growth should exceed 50% and profit growth should exceed 120% YOY once Q4 numbers are released. This was accomplished while navigating a myriad of difficulties including a prolonged shutdown at their most productive plant in Shanghai. They scaled two factories on different continents while maintaining industry-leading margins and continued to make advanced progress in transformational technologies that have fast future cash flow potential like AI, software, and manufacturing. Through all the noise a lot of remarkable progress was made…” (Click here to read the full text)

5. QUALCOMM, Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 80

Net Income (TTM) as of September 30, 2022: $12.93 billion

At the end of the third quarter of 2022, QUALCOMM, Incorporated (NASDAQ:QCOM) was a part of 80 investors’ portfolios that disclosed positions worth $2.56 billion in the company. As of December 31, Matrix Capital Management is the largest shareholder in the company and owns over 3.3 million shares.

QUALCOMM, Incorporated is one of the 5 most profitable NASDAQ stocks today. For fiscal 2022, the company’s net income amounted to $12.93 billion. As of February 17, QUALCOMM, Incorporated has gained 19.14% year to date.

Here is what Madison Funds had to say about QUALCOMM Incorporated in its fourth-quarter 2022 investor letter:

“QUALCOMM Incorporated (NASDAQ:QCOM) continues to be challenged by headwinds in the smartphone supply chain with an expected decline in units for 2022. Despite solid gains in the Internet of Things and Auto segments, Qualcomm’s dominant business remains the smartphone market. We expect to see stabilization of the smartphone market in 2023, including a recovery in China.”

4. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 177

Net Income (TTM) as of December 31, 2022: $23.20 billion

Meta Platforms, Inc. (NASDAQ:META) reported an EPS of $1.76 and generated a revenue of $32.17 billion for the fiscal fourth quarter of 2022. The company outperformed revenue estimates by $475.21 million. Meta Platforms, Inc. generated an annual net income of $23.20 billion in fiscal 2022. The stock is one of the most profitable tech stocks on NASDAQ today.

Meta Platforms, Inc. was spotted on 177 investors’ portfolios at the end of Q3 2022. The total stakes of these hedge funds amounted to $14.15 billion. As of December 31, Eagle Capital Management owns more than 9 million shares of Meta Platforms, Inc. and is the most prominent shareholder in the company.

Here is what Vulcan Value Partners had to say about Meta Platforms, Inc. in its fourth-quarter 2022 investor letter:

“During the quarter we sold Meta Platforms, Inc. (NASDAQ:META) after owning the business for over four years. The fundamentals of our investment case were based on the tremendous number of users that spent time on its various properties and the advertising dollars that flowed to the company as a result. We believed its competitive advantage was that the platform was, more or less, a monopoly on people’s time and attention. The rise of TikTok and other emerging platforms has given us pause on the company’s ability to maximize that advantage. From our perspective, the idea of “one platform to rule them all” may now be a thing of the past as social offerings have become more fragmented.

In addition, though our research has indicated that much of the initial damage done from Apple’s iOS 14.5 privacy changes has been repaired, we remain concerned with Apple’s influence over the digital advertising ecosystem. Apple is one of the largest gatekeepers to Meta’s mobile services, and it has become more difficult for us to gauge the pace of change emerging from Apple relating to privacy, as well as evaluating Apple’s ambitions in advertising…” (Click here to read the full text)

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 156

Net Income (TTM) as of December 31, 2022: $59.97 billion

Alphabet Inc. generated a net income of $59.97 billion for the trailing twelve-month period that ended on December 31, 2022. On February 2, the company reported that its EPS for the fiscal fourth quarter of 2022 amounted to $1.05 and the company generated a revenue of $76.05 billion. Alphabet Inc. is the third most profitable NASDAQ stock today.

Alphabet Inc. was held by 156 hedge funds at the end of Q3 2022. The total stakes of these hedge funds amounted to $19.31 billion. As of December 31, TCI Fund Management has a position worth $4.8 billion in Alphabet Inc. and is the largest investor in the company.

Here is what Diamond Hill Capital had to say about Alphabet Inc. in its Q4 2022 investor letter:

“Other bottom contributors included media and technology giant Alphabet Inc. (NASDAQ:GOOG), apparel and footwear company V.F. Corporation and utility operator Dominion Energy. We believe Alphabet’s shares underperformed on concerns of a weakening macroeconomic environment. The company also reported weaker-than-expected earnings and revenue for Q3 2022. Longer-term, we expect Alphabet’s search engine advertising, YouTube advertising and other initiatives to continue driving revenue growth. As such, we used the share price weakness this quarter to add to our position.”

2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Net Income (TTM) as of June 30, 2022: $72.73 billion

On January 24, Microsoft Corporation reported earnings for the fiscal second quarter of 2023. The company reported an EPS of $2.32 and outperformed EPS estimates by $0.01. The company’s revenue for the quarter amounted to $52.75 billion. In fiscal 2022, Microsoft Corporation generated a net income of $72.73 billion. As of February 17, the stock has gained 7.71% year to date and is ranked among the most profitable NASDAQ stocks today.

At the close of Q3 2022, 269 hedge funds were eager on Microsoft Corporation and disclosed positions worth $61.17 billion in the company. As of December 31, Bill & Melinda Gates Foundation Trust is the top shareholder in the company and has a position worth $9.41 billion.

Here is what Polen Capital had to say about Microsoft Corporation in its fourth-quarter 2022 investor letter:

“In the case of Microsoft Corporation (NASDAQ:MSFT), the company is performing very well. Azure now represents nearly 25% of the total business and continues to compound at a higher rate. Although growth is moderating a bit recently (as it is for AWS and Google Cloud Platform as well), these three platforms collectively generated more than $140 billion in revenue during the last 12 months and are still growing at a healthy rate. Further, Microsoft Cloud, or commercial cloud (which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties) continues to grow roughly 30% and is now about half the business. Mathematically, commercial cloud could decelerate to 20% growth with all other segments decelerating to zero growth and total company revenue growth would still be at least double digits. We believe Microsoft is positioned to compound underlying earnings per share at a midteens rate over the next five years. At 22x earnings, we felt the valuation was attractive and that it should be a large position.”

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 140

Net Income (TTM) as of September 30, 2022: $99.80 billion

Apple Inc. was a part of 140 investors’ portfolios at the end of the third quarter of 2022. These funds held collective stakes worth $144 billion in the company. As of December 31, Warren Buffett’s Berkshire Hathaway is the leading investor in Apple Inc. and has disclosed a position worth $116.3 billion in the company.

Apple Inc. generated an annual net income of $99.80 billion in fiscal 2022. The stock is the most profitable NASDAQ stock today. As of February 17, Apple Inc. has returned 21.97% to investors year to date.

Here is what Distillate Capital had to say about Apple Inc. in its third-quarter 2022 investor letter:

“The largest new purchase was Apple Inc., which after underperforming saw its valuation improve significantly. Over the course of the last year, Apple’s consensus estimated forward free cash flows rose modestly, while its enterprise value fell by around 30%. Apple ranks below the 25th most attractive name in the portfolio and so its weight is capped at 4% vs. 6% for names in the top quartile.”

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also take a look at 10 Best Long-Term Stocks To Buy According to Buffett and 13 Stocks Big Short Michael Burry is Buying and Selling.