10 Most Profitable Tech Stocks to Buy Now

4. NVIDIA Corporation (NASDAQ:NVDA)

TTM Net Income: $63.0 billion

Number of hedge funds: 193

NVIDIA Corp. (NASDAQ:NVDA) designs and manufactures graphics processing units (GPUs), system on a chip units (SoCs), and AI hardware and software. Over the years, the company has expanded its offerings from gaming GPUs to include data center solutions, AI computing, and deep learning technologies. The company’s GPUs are widely used in data centers for high-performance computing, AI training, and inference, making it a critical player in the data center ecosystem. Its products are essential for powering advanced applications in AI, machine learning, and data analytics. NVIDIA Corp. (NASDAQ:NVDA) boasts the best margin profile among the companies in this list. It commands an operating margin of around 63% and net profit margin of 56%.

NVIDIA Corp. (NASDAQ:NVDA) has transitioned from a PC gaming GPU company to a dominant player in the accelerated computing space, offering full-stack computing infrastructure with data-center-scale solutions. The company’s strength is evident in its commanding over 80% market share in GPUs. NVIDIA has greatly benefited from the growing adoption of AI and machine learning technologies, driving strong demand for its chips. The company’s revenue, profitability, and market capitalization have surged since the introduction of GenAI models like ChatGPT.

Despite recent concerns surrounding DeepSeek, analysts continue to view the stock as a consensus Buy, predicting an upside of approximately 26%. On January 28, Tigress Financial Partners upgraded the stock’s rating from Buy to Strong Buy and increased the price target from $170 to $220. According to Tigress Financial’s analysts, total capital investment in AI-driven and data center development is expected to surpass $330 billion in 2025, up from just under $250 billion in 2024. They also project that investments could potentially reach $400 billion by 2026. Given its robust positioning, NVIDIA Corp. (NASDAQ:NVDA) is poised to be a significant beneficiary of these investments and will continue to influence the future of AI and data center technology.