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Zacks.com featured highlights include Micron and NVIDIA
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For Immediate Release
Chicago, IL – January 29, 2026 – Stocks in this week’s article are Micron Technology, Inc. (MU - Free Report) and NVIDIA Corp. (NVDA - Free Report) .
Up 30%+ in 2025, 2 Profitable Semiconductor Stocks to Buy in 2026
Now that 2026 is underway, investors should focus on companies that generate solid returns after covering all operating and non-operating expenses. As a result, profitable businesses tend to be more attractive than the money-losing ones. To assess profitability, investors should rely on accounting ratios that focus on the most widely used measure of a company’s bottom-line performance.
With that in mind, two semiconductor stocks emerged as the top profitable picks, backed by robust net income ratios and significant upside potential. Incidentally, they are Micron Technology, Inc. and NVIDIA Corp., whose shares have soared 239.1% and 38.8%, respectively, last year.
Net Income Ratio Explained
The net income ratio indicates a company's exact profitability level. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
These few parameters have narrowed the universe of more than 7,685 stocks to only seven.
Here are two of the seven stocks that qualified for the screening:
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks.com featured highlights include Micron and NVIDIA
For Immediate Release
Chicago, IL – January 29, 2026 – Stocks in this week’s article are Micron Technology, Inc. (MU - Free Report) and NVIDIA Corp. (NVDA - Free Report) .
Up 30%+ in 2025, 2 Profitable Semiconductor Stocks to Buy in 2026
Now that 2026 is underway, investors should focus on companies that generate solid returns after covering all operating and non-operating expenses. As a result, profitable businesses tend to be more attractive than the money-losing ones. To assess profitability, investors should rely on accounting ratios that focus on the most widely used measure of a company’s bottom-line performance.
With that in mind, two semiconductor stocks emerged as the top profitable picks, backed by robust net income ratios and significant upside potential. Incidentally, they are Micron Technology, Inc. and NVIDIA Corp., whose shares have soared 239.1% and 38.8%, respectively, last year.
Net Income Ratio Explained
The net income ratio indicates a company's exact profitability level. It reflects the percentage of net income to total sales revenues. Using the net income ratio, one can determine a firm’s effectiveness in meeting operating and non-operating expenses from revenues. A higher net income ratio usually implies a company’s ability to generate sufficient revenues and manage all business functions effectively.
These few parameters have narrowed the universe of more than 7,685 stocks to only seven.
Here are two of the seven stocks that qualified for the screening:
Micron Technology
Micron Technology is a provider of memory and storage products globally. The 12-month net profit margin of MU is 28.2% (read more: Micron at 11.7 P/E: One of 2026's Best Buying Opportunities).
NVIDIA
NVIDIA is a global computing infrastructure company offering graphics, compute and networking solutions. The 12-month net profit margin of NVDA is 53% (read more: Micron vs. NVIDIA: One AI Chip Stock is Poised to Win Big in 2026).
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2824675/up-30-in-2025---2-profitable-semiconductor-stocks-to-buy-in-2026
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.