10 Most Profitable NASDAQ Stocks Today

In this article, we will look at the 10 most profitable NASDAQ stocks today. If you want to explore similar stocks, you can go to 25 Most Profitable NASDAQ Stocks Today.

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 (NASDAQ:TXN) 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 (NASDAQ:TXN) 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 (NASDAQ:TXN) 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. (NASDAQ:PEP) 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. (NYSE:PEP) 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. (NASDAQ:AVGO) 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. (NASDAQ:AVGO) 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. (NASDAQ:CSCO) 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. (NASDAQ:CSCO) 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. (NASDAQ:TSLA) 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. (NASDAQ:TSLA) 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. (NASDAQ:TSLA) 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 (NASDAQ:QCOM) 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 (NASDAQ:QCOM) has gained 19.14% year to date.

Here is what Madison Funds had to say about QUALCOMM Incorporated (NASDAQ:QCOM) 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. (NASDAQ:META) 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. (NASDAQ:GOOG) 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. (NASDAQ:GOOG) is the third most profitable NASDAQ stock today.

Alphabet Inc. (NASDAQ:GOOG) 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. (NASDAQ:GOOG) and is the largest investor in the company.

Here is what Diamond Hill Capital had to say about Alphabet Inc. (NASDAQ:GOOG) 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 (NASDAQ:MSFT) 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 (NASDAQ:MSFT) 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 (NASDAQ:MSFT) 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 (NASDAQ:MSFT) 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. (NASDAQ:AAPL) 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. (NASDAQ:AAPL) and has disclosed a position worth $116.3 billion in the company.

Apple Inc. (NASDAQ:AAPL) 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. (NASDAQ:AAPL) has returned 21.97% to investors year to date.

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

“The largest new purchase was Apple Inc. (NASDAQ:AAPL), 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.”

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