Amazon is the leader of the cloud computing market and the business is still growing nicely.
Microsoft Big Edge is the most appropriate access to the popular Openai AI models.
The vertical integration of the alphabet could become a great advantage of the cloud computing market.
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Some of the best growth campaigns on the market can be found in the cloud computing space. Simply put, cloud computing is the provision of computing services online. Customers receive access to connected resources such as recycling power and storage and can quickly increase their use up and down. As a result, it becomes attractive to companies who want to avoid costs and hassle to have and maintain their servers.
Cloud computing is a large fixed cost business that becomes more profitable because it is scaled. As customers grow and disseminate the cost of mass investment in infrastructure, the leverage of operating activities begins. Artificial intelligence (AI) rug (s) only accelerated the demand for the cloud, and the business rushed to adapt patterns, train and control AI workloads in the cloud.
Image Source: Getty Images.
Let’s take a look at three cloud leaders who benefit from this powerful megatrend over the next decade.
Amazon(Nasdaq: amzn) Has developed a modern cloud market using Amazon Web Services, which remains a clear leader with a share of about 30%. Although Amazon is better known for its e -commerce business, AWS is its profit engine and the fastest growing segment. In the last quarter, the AWS revenue increased by $ 17.5% to $ 30.9 billion and operating income increased to $ 10.2 billion.
Amazon goes to AI, which should encourage the next stage of AWS growth. Its Bedrock service provides access to the best foundation models that customers can apply, and Sagemaker gives them tools to create and train their models. Amazon has also developed custom chips for training and conclusions through its Annapurna Labs subsidiary, providing AWS costs and efficiency advantage over solutions that use only graphics processing devices (GPU).
The company also does not sit still to take advantage of the Agentic Ai. Recently, she released Strands-the code system for AI agents’ construction system, and Agentcore, a safe environment for installing them.
AWS remains the best cloud computing company, and its huge infrastructure creation gives it the opportunity to capture more demand as the admission continues to grow.
While it is 2 player in space, Microsoft‘ (Nasdaq: MSFT) Azure has stable part. In the last quarter, Azure’s revenue increased by 39%, marking the eighth truth quarter-30% of chatter growth. This is a huge growth, but it may have been even greater as the company remains confined to its capacity and investing heavily to try to keep up with demand. These costs will be concentrated on more GPU and servers directly related to AI workloads, adding income growth.
Microsoft’s secret sauce is his partnership with Openai, which gives it desired access to its GPT large language models (LLMS). She also started developing Elon Musk Xai models and attracted the founder of Deepmind to create its own inner AI models to enhance some variety.
Nevertheless, the main Azure growth engine is its ability to directly provide access to the leading “Open” AI models. In this respect, Microsoft and Openai have recently agreed to change their relationship to restructure the Open to a profit company. This contract should facilitate a certain tension that has created among the companies and to continue to provide Microsoft to prefer Openai technology.
Azure is now the Microsoft Future Center and, depending on its growth level, it can surpass AWS for a certain decade.
While Alphabet‘ (Nasdaq: googl)(Nasdaq: goog) Google Cloud is the third largest supplier of clouds with about 13% of the market share and its business is probably the most intriguing. The Google Cloud revenue has increased by $ 32% to $ 13.6 billion in the last quarter, while operating revenue increased by more than doubled to $ 2.8 billion. Demand is so strong that the alphabet has recently increased its 2025. The CAPEX budget is $ 10 billion to $ 85 billion to expand the data center capacity.
Google Cloud’s Edge is its technology chimney. Her “twin AI” models are some of the best and quickly caught up with those from Open. Meanwhile, his custom chips, called Tensor processing units (TPU), are highly valued and can give him and customers an advantage of infection, as the workload moves from training to the operating models.
He also created “Kubernets”, which has become industry programs, and its apex AI platform allows customers to easily create, install and control models. The company is also a leader of data analysis with Bigquery, and the waiting Wiz acquisition will make the highest cloud security offer. If this is not enough, it also has one of the largest private fiber networks in the world, which allows it to give it a high performance and low delay worldwide.
While AI Banga is currently raising all cloud suppliers, the Google Cloud vertical integration is distinguished and detected well for the future.
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The Geoffrey Safe has an alphabet position. Motley Fool has positions and recommends alphabet, Amazon and Microsoft. The Motley fool recommends the following options: 2026. January 395 USD calls Microsoft and briefly 2026. January $ 405 Microsoft calls. The Motley fool has a disclosure policy.
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