For Immediate Release
Chicago, IL – September 9, 2025 – Stocks in this week’s article are Broadcom Inc. AVGO and NVIDIA Corp. NVDA.
Broadcom & NVIDIA: Leading Profitable AI Stocks for September
Investors should search for profitable companies that produce strong returns after covering all operating and non-operating expenditures. Therefore, it's sensible to invest in a profitable company rather than one that is losing money.
Here, we use accounting ratios to assess a company's profitability. Among the several profitability ratios available, we hand-picked the most effective and widely used metrics to evaluate a firm's bottom-line performance. These ratios show how effectively a company generates profit relative to sales, assets, or equity.
To that end, two of the best artificial intelligence (AI) stocks, Broadcom Inc. and NVIDIA Corp., have been selected as top profitable companies for the month due to their high net income ratios.
Net Income Ratio
The net income ratio gives us the exact profitability level of a company. 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 ample revenues and successfully manage all business functions.
Here are two of the 72 stocks that qualified for the screening:
Broadcom
Broadcom designs and supplies semiconductor devices and software solutions globally. AVGO recently reported fiscal third-quarter earnings that beat estimates, and has projected robust fiscal fourth-quarter revenues as it continues to capitalize on the boom in generative AI.
Broadcom's custom accelerators are in demand among hyperscale customers since they can process large amounts of data rapidly. The 12-month net profit margin of AVGO is 31.6%. It has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here.
NVIDIA
Jensen Huang led NVIDIA, recently, saw its top and bottom lines for the fiscal second quarter improve due to the rise in sales of data center graphics processing units (GPUs).
NVIDIA continues to be a leader in AI hardware, and its CUDA software platform enjoys a significant competitive advantage. Its 12-month net profit margin is 52.4%. NVIDIA has a Zacks Rank #2 (Buy) (read more: NVIDIA Vs. CoreWeave: Which Stock Offers Greater AI Upside?).
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The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
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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/2747712/broadcom-nvidia-leading-profitable-ai-stocks-for-september
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NVIDIA Corporation (NVDA): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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