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 and NVIDIA Corp. NVDA.

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).

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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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