Analyst Backs Amazon, Microsoft, Alphabet for 10-Year AI Cloud Bet as Usage Drives Demand
Updated
Updated · The Motley Fool · Jun 4
Analyst Backs Amazon, Microsoft, Alphabet for 10-Year AI Cloud Bet as Usage Drives Demand
3 articles · Updated · The Motley Fool · Jun 4
Summary
Amazon, Microsoft and Alphabet were singled out as the top AI cloud stocks to buy and hold for the next decade, on the view that AI creates recurring cloud workloads rather than a one-time build-out.
Usage-based cloud pricing underpins that thesis: as training and real-world AI deployment expand, demand for processing power should keep lifting revenue for the biggest cloud operators.
Amazon’s case rests on AWS, which generated 59% of operating profit in Q1 and posted 28% revenue growth—its best quarter in nearly four years—while the company plans $200 billion in data-center investment this year.
Microsoft’s Azure grew 40% year over year in the latest quarter, while Alphabet’s Google Cloud rose 63%, helped by Tensor Processing Units that lower costs for suitable AI workloads and are now also being sold externally.
The broader call is that cloud could become the dominant business segment for all three companies, with today’s heavy infrastructure spending positioned to pay off long after the current AI build-out phase.