10 Most Profitable Tech Stocks to Buy Now

2. Apple Inc. (NASDAQ:AAPL)

TTM Net Income: $96.2 billion

Number of hedge funds: 158

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets innovative products, including the iPhone, iPad, Mac computers, Apple Watch, and Apple TV. The company also offers a range of software and services, such as the iOS and macOS operating systems, iCloud, advertising, payment services, Apple Music, and the App Store. Apple Inc. (NASDAQ:AAPL) has an operating margin of 32% and a net profit margin of 24%.

Apple Inc. (NASDAQ:AAPL)’s dedication to design, quality, and user experience has established it as a dominant player in the consumer electronics market. The company is increasingly focusing on services and software, which significantly contribute to its revenue. With a large, loyal customer base and an expanding ecosystem, Apple exhibits strong business momentum. The company’s services segment, which includes subscriptions and digital content, is expected to grow significantly, providing a steady revenue stream. As of December 2024, Apple’s installed base of active devices stood at an impressive 2.35 billion.

Apple Inc. (NASDAQ:AAPL) reported steady Q1 2025 results (FY ending September 2025), with sales growth of 4% year-over-year (YoY) which came in line with street expectations, and EPS coming in slightly ahead of expectations. Sales growth was primarily driven by the ‘Services’ segment, where sales rose 14% YoY, while the ‘Product’ segment sales grew 2%. Among products, Mac and iPad sales increased by around 15% each, but iPhone and Wearables sales were down 1%-2%. The company returned over $30 billion to shareholders in the quarter, including $3.9 billion in dividends and $23.3 billion through repurchases of 100 million shares. Additionally, it plans to expand Apple Intelligence to new markets and languages in April 2025, which is expected to drive further adoption and enhance the user experience.

On January 31, a Morgan Stanley analyst reaffirmed his Overweight rating and maintained a $275 price target for the shares. He predicts a strong launch for the iPhone SE 4, with an estimated 3 million units built in the first quarter of 2025 and a total of 15 million shipments throughout FY 2025. He attributes the anticipated success to the iPhone SE 4’s improved hardware, including a 6.1-inch AMOLED display and A18 Bionic chip, which he believes will support a starting price of $499.