Meta, Microsoft, Broadcom Show Strong AI Investment Returns in Latest Earnings; Long-Term Holdings Worth Considering

According to The Motley Fool, Meta, Microsoft, and Broadcom demonstrated robust profitability and capital-generation capabilities in recent quarterly reports, positioning them as potential long-term holdings in the AI sector.

Meta reported first-quarter revenue of $56.3 billion, up 33% year-over-year with operating margin at 41%, while projecting 2026 capital expenditures of $125-145 billion. Microsoft's third-quarter earnings showed $82.9 billion in revenue, up 18% year-over-year, with AI business annualized revenue reaching $37 billion, up 123% from prior year; the company forecasts $190 billion in 2026 capital spending. Broadcom reported second-quarter revenue of $22.2 billion, up 48% year-over-year, with AI semiconductor revenue reaching $10.8 billion, up 143%; management projects $16 billion in AI chip revenue for the current quarter and approximately $56 billion for the full 2026 fiscal year.