The current technology sector rally has been largely driven by Apple, Microsoft, and the semiconductor industry. Broadly speaking, the software industry has been lagging behind. However, 's (NASDAQ: ADBE) latest quarterly results show that its artificial intelligence (AI) investments are paying off. Meanwhile, Broadcom (NASDAQ: AVGO) is on track to generate over $50 billion in revenue this fiscal year -- a milestone for the chip company. And the things that are going right for Adobe and Broadcom show why the technology sector deserves its premium valuation.

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After releasing downbeat full-year guidance in its fiscal first-quarter report, Adobe surprised investors by raising its guidance after delivering blowout fiscal second-quarter earnings. For the period, which ended May 31, the company announced solid results across its Creative Cloud, Document Cloud, and Experience Cloud segments, especially with enterprise customers.

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Source Fool.com