While many may think of investing in stocks as a quick path to wealth, the truth is that building riches usually takes time and patience. Successful investors focus on companies that not only grow but show potential for continued growth. These companies offer dividends and engage in stock buybacks, rewarding their shareholders. By compounding the returns over time, these investments can lead to substantial wealth creation, potentially turning ordinary investors into millionaires.

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Below are three leading technology stocks that fit these investment criteria and are currently trading at appealing valuations. Holding onto these stocks could significantly benefit investors in the long run.

Meta Platforms: A Social Media Powerhouse

Since its IPO in 2012, Meta Platforms (NASDAQ: META) has consistently outperformed the S&P 500 (SNPINDEX: ^GSPC). With platforms like Facebook, Instagram, WhatsApp, and Threads, Meta boasts over 3.29 billion daily active users. This vast user base turns Meta into a dominant player in digital advertising, generating over $156 billion in annual revenue and converting more than $52 billion into free cash flow.

Meta is channeling billions into artificial intelligence (AI) while still having ample cash for dividends and stock repurchases. The company reinstated its dividend this year and has repurchased 11.5% of its shares over the last five years, which boosts earnings per share and can elevate the stock price. Analysts forecast average earnings growth of 20% per year, presenting solid value with a P/E ratio of 27. With CEO Mark Zuckerberg still in his 40s, long-term investors align themselves with a leader who has previously transformed Meta into a trillion-dollar company.

Alphabet: Innovation Across Different Sectors

As the parent of Google, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has established itself as a major technology player. Alphabet generates close to $340 billion in annual revenue, driven by its success in digital advertising from Google and YouTube, along with its rapidly growing cloud services. The company also engages in innovative projects, including Android, Waymo’s self-driving technology, and AI initiatives like Gemini.

With a history of outperforming the S&P 500, Alphabet displays promising growth across its business sectors. This year, the company began paying dividends and reduced its share count by 11% through stock buybacks. Analysts predict that Alphabet’s earnings will grow nearly 18% yearly, a robust growth trajectory for a stock trading at under 24 times earnings. While there are concerns regarding ongoing antitrust lawsuits, Alphabet’s diverse assets position it well for long-term success.

Taiwan Semiconductor Manufacturing: Essential for AI

In the world of semiconductors, Taiwan Semiconductor Manufacturing (NYSE: TSM) stands out, holding a commanding 64% of global semiconductor production, according to Counterpoint Research. TSMC plays a crucial role in the AI industry by manufacturing chips designed by companies like Nvidia.

With annual revenue nearing $83 billion and $26 billion in free cash flow, TSMC has delivered the highest total returns among the stocks discussed since 2012, primarily through organic growth. While it does not engage in share repurchases, TSMC offers a dividend that currently yields about 1%. Analysts expect earnings to grow over 31% annually in the next three to five years, making TSMC an attractive investment at 29 times earnings despite geopolitical risks regarding Taiwan’s security.

Should You Consider Investing in Meta Platforms?

Before purchasing shares of Meta Platforms, be aware of the following:

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former Facebook director and sister of Meta Platforms’ CEO Mark Zuckerberg, also serves on The Motley Fool’s board. Justin Pope does not hold interest in any stocks mentioned. The Motley Fool recommends Alphabet, Meta Platforms, Nvidia, and Taiwan Semiconductor Manufacturing and has positions in them. A full disclosure policy is available.

The views expressed in this article are solely those of the author and do not necessarily represent the views of Nasdaq, Inc.