The technology sector is the home of the most innovative companies in the world. This is the sector that has historically delivered monster winners in the stock market. Leading companies enabling the growth of artificial intelligence (AI) are reporting strong financial results that point to great returns for long-term investors.

Here are two leaders in the semiconductor and software industries that will grow your money over the long term.

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1. Taiwan Semiconductor Manufacturing

A long history of market-beating returns, a highly profitable business, and a large customer base make Taiwan Semiconductor Manufacturing (TSM 0.38%) a no-brainer stock to profit from growing demand for AI chips. Its profitability allows it to make massive investments in cutting-edge chipmaking technology, and the company's current spending plans point to a tremendous growth opportunity ahead.

TSMC plays an essential role in the global supply chain for processors, with over 65% share of the global foundry market, according to CounterPoint Research. As a foundry, it is in a profitable position of making chips for Nvidia, Advanced Micro Devices, and Broadcom, among other leading chip companies.

With substantial demand for AI technology, TSMC's revenue grew 35% year over year last quarter, and management is guiding for an approximately 38% year-over-year increase in the second quarter. It's investing billions in expanding its manufacturing footprint, yet still reporting healthy profitability, with a high profit margin of 43%.

Investors should be aware that tensions between Taiwan and China create geopolitical risk, but TSMC is actively working to expand its chipmaking facilities globally. It is investing $165 billion to build a new facility in Arizona. Once completed, TSMC expects 30% of its most advanced chips to be made there. It is also investing to support manufacturing in Japan and Europe.

The Wall Street consensus projects the company's earnings to grow at an annualized rate of 21% over the next several years. The stock can currently be bought for a reasonable earnings multiple of 19 times this year's estimate, which is consistent with its past trading history.

2. Microsoft

Microsoft's (MSFT 1.10%) dominance in software makes it another no-brainer stock to buy for AI. It generated nearly $100 billion in net profit over the last year, which is growing at double-digit annual rates, and it is investing those profits into data centers to support strong demand for its cloud and AI services.

Microsoft delivered a strong earnings report for its March-ending fiscal third quarter. Revenue and earnings increased 15% and 19%, respectively, on a constant-currency basis over the year-ago quarter. It delivered profitable growth while opening data centers across 10 countries.

Microsoft is the second-leading cloud services provider but is gaining share after posting an impressive 35% year-over-year increase in its Azure cloud services business. Azure demand accelerated in the quarter, with strong demand from companies across multiple industries.

It is also well-positioned to benefit from the growing demand for AI agents, which are smart enough to complete a series of tasks without additional human input. It is bringing more agentic AI capabilities to Microsoft 365 Copilot, which can analyze massive amounts of data from the web or from within a company's own data to offer expertise on a range of topics.

Investors can't go wrong with this tech giant. Microsoft's massive data center infrastructure and leading cloud service offering will continue to attract growing demand from major businesses in the coming years. Analysts expect the company's earnings to grow 12% annually, which should deliver satisfactory returns to investors.