11 Best Extremely Profitable Stocks to Buy According to Analysts

8. Microsoft Corporation (NASDAQ:MSFT)

TTM Net Profit Margin: 35.43%

Number of Hedge Fund Holders: 317

Analyst Upside Potential: 27.79%

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that operates through three key segments including Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. It provides a range of software, services, and devices for individuals and organizations.

Columbia Seligman Global Technology Fund in its Q4 2024 investor letter mentioned that they maintained an underweight position in Microsoft Corporation (NASDAQ:MSFT) during the fourth quarter of 2024, which proved beneficial due to a decline in the company’s share price. Moreover, recently Tigress Financial analyst Ivan Feinseth reiterated a Buy rating on the stock. The analyst believes that the company’s AI leadership has been enhanced by its integration of OpenAI’s ChatGPT into its products. During the fiscal second quarter of 2025, the company reported a revenue of $69.6 billion reflecting a 12% increase year-over-year. In addition the operating income also grew 17% during the same time to reach $31.7 billion. Microsoft 365 Commercial products and cloud services were a key contributor as it grew by 15% driven by Microsoft 365 Commercial cloud revenue. It is one of the best extremely profitable stocks to buy according to analysts.

Columbia Seligman Global Technology Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q4 2024 investor letter:

“Within software, the fund maintained an underweight position to Microsoft Corporation (NASDAQ:MSFT), which proved beneficial as share price for the company fell during the fourth quarter. Microsoft’s outlook for its Azure business came down slightly, which hampered the stock price at times during the quarter and, combined with losses on the Open AI business, led to a disappointing end to 2024. The company has guided its capital expenditure spending up slightly and investors continue to wait for additional monetization from the company’s large commitment to AI infrastructure spending. The fund continued to hold an overweight allocation to Oracle as we believe Oracle is positioned to be a major beneficiary of the AI rollout and has the potential to compete with other large cloud providers, such as Amazon, Alphabet and Microsoft. Oracle shares moved lower during the quarter and the stock suffered its worst day of the year in December, as the company narrowly underperformed analysts’ average estimates. Oracle’s business model remains strong as demand for computer power that can handle AI is increasing and the company’s revenues from its cloud infrastructure unit moved higher year over year.”