These 3 Technology Stocks Are Money-Printing Machines

Key Points

• Broadcom's custom AI chip business continues to power large hyperscaler deployments globally.

• ServiceNow remains a dominant force in the enterprise workflow automation market.

• Oracle dominates the enterprise database market and has one of the most secure AI platforms.

• These 10 stocks could mint the next wave of millionaires ›

The technology sector has created extraordinary wealth for the shareholders since the dawn of the internet age. While a few of the technology companies have been building critical infrastructure needed to power the digital economy, many others have successfully developed consumer applications that have become indispensable for billions of users.

Here are three technology giants that have generated exceptional long-term returns for shareholders and are well worth considering today.

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Broadcom

Artificial intelligence (AI) infrastructure giant Broadcom (NASDAQ: AVGO) has created an exceptional portfolio of customized semiconductor chips and infrastructure software solutions.

Broadcom’s financials are impressive. The company raked in $15 billion of revenue in the second quarter of its fiscal 2025 (ended May 4), up 20% year over year. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) reached $10 billion, translating into a 67% margin.

The chipmaker produced $6.4 billion in free cash flow during the second quarter and has a strong balance sheet with $9.5 billion in cash. Thanks to its strong cash generation and solid financial position, it has returned an impressive $7 billion to shareholders in the second quarter through dividends and stock buybacks.

Broadcom’s AI semiconductor business (custom accelerators and AI networking) remains the key growth engine, with revenue rising 46% year over year to $4.4 billion in the second quarter. While custom accelerator revenue was up double-digits, AI networking revenue soared by more than 170% in the second quarter. Management now expects the company’s AI semiconductor revenue to grow 60% to $5.1 billion in the third quarter.

Unlike Nvidia, which dominates the GPU landscape, Broadcom has become a major provider of custom processors and is currently working with three hyperscalers who are each planning to deploy 1 million AI accelerator clusters by 2027.

Besides chips, the company’s advances in AI networking (Tomahawk 6 switches) are enabling massive AI clusters in a manner that can lower latency and improve bandwidth, all while reducing power consumption. Broadcom's $61 billion acquisition of VMware, an infrastructure software company, is also proving to be a brilliant move. Broadcom’s infrastructure software business now operates at a 93% gross margin and 76% operating margin.

Considering Broadcom’s cutting-edge AI offerings and robust financials, the stock seems an impressive pick now.

ServiceNow

ServiceNow (NYSE: NOW) generates substantial revenue by selling enterprise AI and workflow automation solutions through its Now Platform. In the second quarter, the company generated over $3.1 billion in subscription revenue, up 22.5% on a year-over-year basis. With another $102 million earned from professional services and other areas, the company generated more than $3.2 billion in revenue in the second quarter, up 22.5%. Management expects to hit a $15 billion-plus subscription revenue target in 2026.

This tech giant has emerged as a significant beneficiary of the increasing adoption of enterprise AI globally. The company's Now Assist offering (a suite of generative AI capabilities integrated into the Now workflow automation platform) is projected to generate $1 billion in annual contracted business by 2026, almost four times higher than $250 million annual contracted value in early 2025.

ServiceNow served 528 customers paying above $5 million in annual contracted value, while the number of customers contributing beyond $20 million annually expanded by more than 30% year over year in the second quarter. The company’s Now platform boasts a remarkable 98% renewal rate, highlighting the stickiness of its offerings.

The enterprise software leader generated $535 million in free cash flows, translating into a 16.5% free-cash-flow margin in the second quarter. The company is committed to returning capital to shareholders, as is evident from $361 million worth of share repurchases in the second quarter. Despite these buybacks, ServiceNow boasts an impressive $10.8 billion in cash and investments at the end of the second quarter.

Considering the ServiceNow's many strengths, smart investors should consider at least a small stake in the company.

Oracle

Oracle (NYSE: ORCL) generates substantial cash flows by developing and selling cloud infrastructure and database software solutions, many of which are powering complex AI workloads.

Oracle's database technology works in conjunction with Oracle Cloud Infrastructure (OCI, Oracle's cloud computing platform). It is also compatible with all of the leading cloud platforms, such as Amazon’s AWS, Alphabet’s Google Cloud, and Microsoft’s Azure. Additionally, Oracle Database 23ai enables enterprises to work with their proprietary data and all the popular large language models while maintaining complete security.

The company reported $15.9 billion in revenue in the fourth quarter of its fiscal 2025 (ended May 31), up 11% year over year. OCI was a significant growth driver, and saw revenue jump 52% to $3 billion in the fourth quarter.

The enterprise technology leader generated $20.8 billion in operating cash flow during fiscal 2025, an increase of 12% year over year. With its backlog growing 41% year over year to $138 billion at the end of fiscal 2025 and further expected to grow 100% by the end of fiscal 2026, Oracle enjoys exceptional revenue visibility.

Oracle is also committed to returning capital to shareholders, as is evident from $150 million in share buybacks in the fourth quarter and dividend payments of almost $4.7 billion in fiscal 2025. Management also expects OCI revenue to grow year over year by 70% in fiscal 2026, while total revenue is expected to be at least $67 billion, up 16%. This highlights the company’s solid growth prospects in the coming year.

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Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, Nvidia, Oracle, and ServiceNow. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.