Many investors drawn to the tech sector are on the hunt for the next big winner, for a stock that could transform a modest investment into a fortune. To achieve this, a stock would have to deliver massive returns – a 100-bagger gain. While it’s difficult to predict which tech stocks will achieve these kinds of life-changing gains, we can learn valuable lessons by examining some that have done it in the past. Let’s look at three tech stocks that produced millionaire investors: ASML, Broadcom, and Amazon.
ASML: A Leader in Lithography
ASML (ASML 1.04%) is the world’s leading manufacturer of lithography systems. These systems are essential for etching circuit patterns onto silicon wafers, a critical step in chip manufacturing. Top foundries worldwide, including Taiwan Semiconductor (NYSE: TSM) and Samsung, use these systems. ASML, headquartered in the Netherlands, listed its American depositary receipts in the U.S. on March 15, 1995. If you had invested $10,000 in its IPO, that would be worth an estimated $4.04 million today, and the investment would generate about $43,300 annually in dividends.
From 1995 to 2024, ASML’s revenue grew at a compound annual growth rate (CAGR) of 16%. Over the past three decades, it’s pulled ahead of competitors to become the world’s largest producer of deep ultraviolet systems. It also became the sole producer of high-end extreme ultraviolet systems, which are essential for creating the world’s smallest, most powerful, and most efficient chips. ASML’s dominance in this crucial market has cemented its position as a linchpin of the semiconductor industry. Although it faces some short-term challenges, including export restrictions against China and tariffs, it still has significant growth potential in the coming decades.
Broadcom: Rapid Expansion Through Acquisitions
Broadcom (AVGO 3.06%), previously known as Avago until it acquired the original Broadcom in 2016, is another example of a semiconductor stock that has produced impressive investment returns. A $10,000 investment in Avago’s IPO on August 6, 2009, would be worth $1.23 million today, generating approximately $16,300 per year in dividends under the “new” Broadcom. Avago’s acquisition of the original Broadcom made it one of the world’s largest chip producers for a wide range of markets. However, following the rebrand, Broadcom expanded significantly by acquiring CA Technologies, Symantec’s enterprise security division, and VMware, transforming the company into a diversified tech giant.
These acquisitions have transformed Broadcom into a diversified tech company. This strategy led to a robust revenue growth; its annual revenue grew at a CAGR of 27% from fiscal year 2009 to fiscal year 2024, which ended in November 2024. Broadcom is also well-positioned for growth related to AI: sales of networking, optical, and custom accelerator chips for AI-focused data centers more than tripled during fiscal year 2024, representing 24% of its total revenue. These numbers give hints as to Broadcom’s future.
Amazon: Dominance in E-commerce and Cloud Computing
When Amazon (AMZN 1.05%) launched its IPO on May 15, 1997, many investors were skeptical of the e-commerce company’s prospects, as the company struggled with profitability in a competitive environment. However, investors who took a chance on Amazon with a $10,000 investment in its IPO would be sitting on approximately $25.87 million today. Between 1997 and 2024, Amazon’s revenue grew at a CAGR of 36%. This phenomenal growth was driven by the rapid expansion of its e-commerce marketplace in the U.S. and international markets. Furthermore, the popularity of its Prime membership, and the robust growth of its cloud infrastructure platform, Amazon Web Services (AWS), also played a vital role.
The growth of AWS, a higher-margin business, offset the lower margins of Amazon’s e-commerce operations, resulting in soaring profits. Today, Amazon dominates both e-commerce and cloud infrastructure and maintains a significant lead over its competition. The company continues to grow its e-commerce ecosystem with new hardware devices and media services, and it’s expanding its cloud customer base with a growing selection of analytics tools and AI services. These growth engines suggest continued investor returns could happen for many years to come.
