There’s no doubt that technology stocks have been among the hottest investments of the last two decades. Innovation and rapid advancement have made them some of the most desirable stocks, and their valuations are exploding to reflect that. As of late August, seven of the 10 most valuable companies in the world are tech companies.

As popular as tech stocks are, not all are created equal. Some companies will have a lot of industry-specific success in the long term, while others are built for lasting success. The two companies below are great options for investors interested in companies that fall into the latter category. They should also come as no surprise.

1.Microsoft

Microsoft (NASDAQ:MSFT) has been on a roll for the past five years. The stock is up more than 200% in that time. That’s no small feat, considering the company’s market capitalization was around $1 trillion five years ago and now exceeds $3 trillion.

Microsoft is a Swiss Army knife in the world of technology—there aren’t many things it doesn’t do. It sells hardware (PCs and tablets), enterprise and consumer software (Office and Windows), the world’s second-largest cloud platform (Azure), video games (Xbox), and a social media platform (LinkedIn).

Its presence in a variety of industries has done wonders for Microsoft’s finances. In fiscal 2024 (ended June 30), it generated $245.1 billion in revenue, up 16% year over year. But it could be argued that its operating income (profit from core operations) of $109.4 billion is more impressive. For comparison, that’s more than ObjectiveIncome for the past four apartment.

MSFT annual operating income data according to YCharts.

Much of Microsoft’s impressive operating income growth can be attributed to the growth of its Azure cloud platform. Although it still lags Amazon The market share of web services (AWS) is constantly growing, and over the past year their popularity has increased due to artificial intelligence (AI).

Microsoft ended the latest quarter with more than 60,000 Azure AI customers, up from about 37,500 during the same time last year. Those customers are also spending more on average, which is contributing to the platform’s impressive revenue growth.

The tech giant already has a strong presence in a variety of enterprise and consumer software products, but the growth of Azure — and the cloud computing industry as a whole — gives it a strong opportunity for growth that should continue for the foreseeable future.

2. Apple

Apple (NASDAQ:AAPL) was the world’s most valuable public company for most of the past decade, but its growth has lagged most of the Magnificent Seven over the past 12 months. Still, it remains one of the best tech stock investments you can make.

Apple is known for its hardware, which will continue to be its bread and butter for the foreseeable future, but it has made big strides in its services division. Three years ago, services made up just 27% of the company’s revenue. In the most recent quarter, they were 39%. That’s why I’m confident Apple will be able to maintain its dominance for quite some time.

Its overreliance on hardware (and the iPhone in particular) has made Apple vulnerable to the cyclical spending habits of consumers, as we’ve seen with the decline in smartphone sales over the past few years. However, services are often offered on a subscription basis, giving the company a more reliable revenue stream.

AAPL revenue data (quarterly year-over-year growth) according to YCharts.

Now that Apple devices are in billions of hands, the company has prioritized building an ecosystem of services that makes it much harder for people to leave. Convenience and seamless integration between Apple devices and software are key selling points, even at premium prices.

Whether it’s ApplePay and Apple Card with iPhone or Health and Fitness+ with Apple Watch, Apple is showing us how its hardware and services ecosystem can be integrated into our daily lives. This increases Apple’s longevity potential by deepening customer loyalty and opening new revenue streams.

Apple is a company whose products I buy regularly and whose long-term vision I trust.

Is it worth investing $1,000 in Microsoft now?

Before you buy Microsoft stock, consider the following:

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Stefon Walters holds positions in Apple and Microsoft. The Motley Fool holds positions in and recommends Amazon, Apple, Microsoft, and Target. The Motley Fool recommends the following options: long January 2026 $395 call options on Microsoft and short January 2026 $405 call options on Microsoft. The Motley Fool has a disclosure policy.