Core Insights - Investors should focus on companies that provide strong returns after considering all operating and non-operating expenses, with profitable businesses being more attractive than those with losses [1] - NVIDIA Corporation (NVDA) and Micron Technology, Inc. (MU) are highlighted as top profitable picks due to their strong net income ratios and significant upside potential [2] Profitability Metrics - The net income ratio is a key indicator of a company's profitability, representing the percentage of net income relative to total sales revenues, with a higher ratio indicating better revenue generation and expense management [3] - Additional screening parameters include Zacks Rank 1 (Strong Buy), trailing 12-month sales and net income growth higher than the industry, and a strong buy percentage rating greater than 70% [4][5] Company Performance - NVIDIA has a 12-month net profit margin of 55.6%, indicating strong revenue efficiency [6][8] - Micron Technology has a 12-month net profit margin of 41.5%, reflecting solid profitability in the memory and storage sector [7][8]

Core Insights - Nvidia reported a revenue of $68.13 billion for the quarter ended January 2026, marking a year-over-year increase of 73.2% and exceeding the Zacks Consensus Estimate by 4.14% [1] - The earnings per share (EPS) for the same period was $1.62, compared to $0.89 a year ago, representing a surprise of 6.71% over the consensus estimate of $1.52 [1] Revenue Performance by Segment - Data Center revenue reached $62.31 billion, surpassing the estimated $58.72 billion, with a year-over-year increase of 75.1% [4] - OEM and Other revenue was reported at $161 million, slightly below the estimated $174.4 million, but still showing a 27.8% increase year-over-year [4] - Automotive revenue was $604 million, compared to the average estimate of $662.65 million, reflecting a 6% year-over-year growth [4] - Professional Visualization revenue was $1.32 billion, significantly exceeding the estimated $757.59 million, with a remarkable year-over-year increase of 158.5% [4] - Gaming revenue was reported at $3.73 billion, below the estimated $4.26 billion, but still showing a 46.5% increase year-over-year [4] - Compute & Networking revenue reached $61.65 billion, surpassing the estimated $59.03 billion, with a year-over-year increase of 71.1% [4] - Data Center-Compute revenue was $51.33 billion, slightly above the estimated $51.06 billion, with a year-over-year growth of 57.7% [4] - Graphics revenue was reported at $6.48 billion, exceeding the estimated $6.27 billion, with a year-over-year increase of 96.5% [4] - Data Center-Networking revenue was $10.98 billion, significantly above the estimated $9 billion, reflecting a year-over-year increase of 263.1% [4] Stock Performance - Nvidia shares have returned +2.1% over the past month, outperforming the Zacks S&P 500 composite's +0.6% change, and currently hold a Zacks Rank 1 (Strong Buy) indicating potential for further outperformance in the near term [3]

| ANN OD EQUILY I CHANAGER A | COURCHP(D) DAGLAIGS | Debour | DEHING | | --- | --- | --- | --- | | NVIDIA Corp | Periodicity & Source Standard Cur USD . Broker ------- Guidance | | | | More estimates are available MODL » | | | | | U Headline & Headline Growth 2 Company-Specific | | | | | Q3 2026 Act Q4 2026 Est | 01 2027 Est Q2 2027 Est Q3 2027 Est | | | | 3 Months Ending 10/31/2025 01/31/2026 # 04/30/2026 | · 10/31/2026 # 07/31/2026 | | | | 10 EPS, Adje 1.300 1.532 50 | 1.676 49 1.843 49 2.066 | | | | 32 I ...

Core Insights - NVIDIA Corporation (NASDAQ: NVDA) is recognized as one of the most profitable mega-cap stocks, with a stock appreciation of nearly 11% since CEO Jensen Huang's appearance on CNBC on February 6 [1] - Huang emphasized the necessity of increased capital expenditure (capex) for AI infrastructure, describing the current phase as a "once in a generation infrastructure buildout" that will last for another seven to eight years [1] - The company is expected to report a strong quarter, driven by favorable supply and demand dynamics and increasing confidence in demand from non-traditional customers [4] Company Overview - NVIDIA Corporation is a California-based computing infrastructure company that provides graphics, compute, and networking solutions, operating through two segments: Compute & Networking and Graphics [5] Market Sentiment - Goldman Sachs reaffirmed its Buy rating and set a price target of $250 for NVIDIA, indicating a potential upside of 31.55% from the current price [3] - The firm identified several growth drivers for NVIDIA, including positive revisions to hyperscaler capex extending into 2027 [4]

Core Insights - The article highlights two semiconductor stocks, Micron Technology, Inc. (MU) and NVIDIA Corp. (NVDA), as top profitable picks for 2026, following their significant performance in 2025 [2][3]. Company Summaries Micron Technology, Inc. (MU) - Micron Technology is a global provider of memory and storage products, with a 12-month net profit margin of 28.2% [5]. NVIDIA Corp. (NVDA) - NVIDIA is a global computing infrastructure company that offers graphics, compute, and networking solutions, boasting a 12-month net profit margin of 53% [6]. Performance Metrics - Micron's shares increased by 239.1% in 2025, while NVIDIA's shares rose by 38.8% during the same period [3]. Investment Considerations - The article emphasizes the importance of focusing on profitable companies that can cover all operating and non-operating expenses, making them more attractive to investors [2].

Core Insights - Investors should focus on companies that generate solid returns after covering all operating and non-operating expenses, making profitable businesses more attractive than money-losing ones [1] Group 1: Semiconductor Stocks - Micron Technology, Inc. (MU) and NVIDIA Corporation (NVDA) are highlighted as top profitable picks, with shares increasing by 239.1% and 38.8% respectively last year [2] - Micron Technology has a 12-month net profit margin of 28.2%, indicating strong profitability among chipmakers [6][8] - NVIDIA reported a 12-month net profit margin of 53%, showcasing its strong ability to generate income from computing solutions [7][8] Group 2: Profitability Metrics - The net income ratio is a key indicator of a company's profitability, reflecting the percentage of net income to total sales revenues [3] - A higher net income ratio implies a company's effectiveness in managing revenues and expenses [3] - Additional screening parameters include Zacks Rank, trailing 12-month sales and net income growth, and a strong buy percentage rating greater than 70% [4][5]

Core Insights - SGA's U.S. Large Cap Growth Strategy experienced a portfolio return of -1.3% (Gross) and -1.4% (Net) in Q3, underperforming against the Russell 1000 Growth Index's return of 10.5% and the S&P 500 Index's return of 8.1% [1] - The investment strategy focuses on high-quality growth businesses expected to achieve consistent mid-teens earnings growth, stable revenue, and cash flow [1] - In Q3, lower-quality stocks and cyclical industries outperformed, negatively impacting SGA's investment style [1] Company Highlights - NVIDIA Corporation (NASDAQ:NVDA) was highlighted as a key stock in SGA's portfolio, with a one-month return of 1.70% and a 34.84% increase over the last 52 weeks, closing at $186.50 per share on December 31, 2025, with a market capitalization of $4.53 trillion [2] - NVIDIA's performance in Q3 was driven by surging demand for accelerated computing and AI infrastructure, with management projecting total infrastructure spending of $3-4 trillion in the future [3] - The company announced a $5 billion investment into Intel for joint product development, aimed at strengthening its AI infrastructure platforms and mitigating competitive threats [3] - NVIDIA also entered a significant deal with OpenAI, although expectations regarding this partnership are cautious due to uncertainties in funding, business use cases, and revenue models [3]

Core Insights - BlackRock Science and Technology Term Trust reported a return of 10.1% on market price and 11.6% on net asset value (NAV) for Q3 2025, underperforming the MSCI Custom ACWI SMID Growth IT Call Overwrite Index which returned 15.2% [1] - The trust adjusted its investments in the technology sector to align with changing market conditions and emerging opportunities [1] Company Highlights - NVIDIA Corporation (NASDAQ:NVDA) was highlighted as a key stock, with a one-month return of 3.73% and a 52-week gain of 40.16%, closing at $188.22 per share with a market capitalization of $4.583 trillion on December 29, 2025 [2] - NVIDIA's strong performance was attributed to record quarterly revenue and growth in its Data Center segment, particularly driven by AI compute chips, reinforcing its leadership in AI acceleration and next-generation data-center infrastructure [3] Market Position - NVIDIA Corporation ranked 5th among the 30 Most Popular Stocks Among Hedge Funds, with 234 hedge fund portfolios holding its stock at the end of Q3 2025 [4] - The company reported $57 billion in revenues for Q3 2026, reflecting a 62% year-over-year growth [4]

分组1 - Bailard Technology Strategy generated a 9.36% net return in Q3 2025, underperforming compared to the S&P North American Technology Index's 13.14% return and the Morningstar U.S. Open-End Technology Categories' 11.64% return [1] - The quarter showed improved technology fundamentals driven by structural demand trends and evolving regulations across key verticals [1] - NVIDIA Corporation (NASDAQ:NVDA) was highlighted as a cornerstone holding, contributing +216 basis points to the strategy with an 18.10% return [3] 分组2 - NVIDIA Corporation reported $57 billion in revenues for Q3 2026, marking a 62% year-over-year growth [3] - NVIDIA's stock gained 38.58% over the last 52 weeks, closing at $190.53 per share on December 26, 2025, with a market capitalization of $4.639 trillion [2] - The company continues to lead in accelerated computing and datacenter networking, supported by its unmatched developer ecosystem and innovation cadence [3]

Core Insights - Investors should focus on companies that generate strong returns after covering all expenses, favoring profitable firms over those that are losing money [1] Company Selection - NVIDIA Corporation (NVDA), Micron Technology, Inc. (MU), and Seagate Technology Holdings plc (STX) are identified as top picks from the S&P 500 due to their high net income ratios [2][8] Net Income Ratio - The net income ratio measures a company's profitability by reflecting the percentage of net income to total sales revenues, indicating effectiveness in managing expenses [3] Screening Parameters - Additional criteria for selecting winning stocks include: - Zacks Rank equal to 1, indicating 'Strong Buys' [4] - Trailing 12-month sales and net income growth higher than the industry average [5] - Trailing 12-month net income ratio higher than the industry average [5] - Percentage of broker recommendations rated as Strong Buy greater than 70% [5] Qualified Stocks - The screening process narrowed down over 7,685 stocks to 26, with notable mentions: - NVIDIA has a 12-month net profit margin of 53% [6][8] - Micron has a 12-month net profit margin of 28.2% [7][8] - Seagate Technology has a 12-month net profit margin of 17.9% [9][8]