Investments in the technology sector have provided investors with solid returns. Vanguard Information Technology Index Fund (NYSEARCA:VGT) has more than doubled in the last five years. It is full of technology stocks, but it has a significant presence in the Magnificent Seven. This is no surprise, as these stocks also account for a large portion of the S&P500 and the Nasdaq-Composite.

The technology sector has historically been a sector that has had a good chance of outperforming the stock market. However, you can also look at technology stocks to discover opportunities to outperform the technology industry. The technology sector has some outliers that seem poised for massive price increases. Investors can find these types of stocks by looking for companies that are seeing rising revenue and net income.

The three technology stocks on this list have the potential to generate long-term returns. One of these companies is a leader in advertising. The second stock offers a cloud platform with steady, recurring revenue. The last stock is an AI chipmaker that is gaining market share.

Meta-platforms (META)

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Meta-platforms (NASDAQ:META) is the leading social media company with three major platforms: Facebook, Instagram and WhatsApp. The company knows how to keep people glued to their screens, to the delight of advertisers and shareholders. It has 3.27 billion daily active users across its family of apps, a 7% improvement year-on-year.

It’s not just the number of users that’s increasing at Meta Platforms. Revenue increased 22% year-over-year to $39.1 billion. At the same time, net income increased 73% to $13.5 billion. The company’s headcount only decreased 1% year-over-year, so Meta Platforms’ rising profits aren’t just due to layoffs. The company also has $58.08 billion in cash. It paid out $1.27 billion in dividends to investors and put $6.32 billion into its share buyback program.

Meta Platforms stock has outperformed the market for several years. Shares are up 38% year to date and have more than doubled over the past five years. The stock trades at just a P/E of 24 and offers a yield of 0.42%.

ServiceNow (NOW)

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ServiceNow (NYSE:NOW) provides a cloud platform that helps companies increase productivity and offer chatbots to their customers. The company’s workflows are a massive selling point and have contributed to a 98% renewal rate among its customers. ServiceNow has nearly 2,000 customers with annual contracts over $1 million and more than 8,100 customers. This customer base includes about 85% of the Fortune 500 companies.

Artificial intelligence helped the company deliver another solid earnings report in the second quarter. Revenue increased 22% year over year to $2.6 billion. Net income was $262 million, representing a net profit margin of 10%.

ServiceNow has outperformed the stock market for several years. Shares are up 14% year-to-date and have nearly tripled over the past five years. The company is rated a strong buy by 29 Wall Street analysts, predicting 11% upside from current levels. The highest price target of $935 per share means a 20% gain is possible.

Broadcom (AVGO)

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Broadcom (NASDAQ:AVGO) is a leading AI chipmaker that is gaining momentum. The company generated record revenue of $3.1 billion from its AI products and services, but that wasn’t the only good news in its second quarter of fiscal 2024 results. Revenue grew 43% year over year as the VMware acquisition further strengthens Broadcom’s infrastructure software business. More and more companies are integrating VMware into their software stacks to build private clouds.

Management was confident in raising its guidance for fiscal 2024. Broadcom is now expected to report consolidated revenue of $51 billion, with adjusted EBITDA expected to be 61% of total revenue. While Broadcom’s 1-for-1 stock split drew attention to the stock, it has been a consistent outperformer. Shares are up 31% year-to-date and have gained more than 400% over the past five years.

A potential OpenAI The partnership can open the door to further gains. It can pave the way for Broadcom to expand its market share in the AI ​​chip industry.

At the time of publication, Marc Guberti held long positions in NOW and AVGO. The opinions expressed in this article are those of the author, subject to InvestorPlace.comPublishing guidelines.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.