The technology industry, an engine of innovation and U.S. prosperity for more than half a century, is accelerating its recovery from the recession with surging earnings that have spurred companies to sharply ramp up their hiring.

The latest evidence for the rebound came Thursday, when Internet giant Google Inc. posted a 37% profit jump for the first quarter and chip maker Advanced Micro Devices Inc. reported a 34% revenue increase to record levels. The results follow the strong showing of bellwether Intel Corp., which Tuesday...