Analyst Favors Amazon, Alphabet Over Microsoft as AWS Grows 28% and Google Cloud Jumps 63%
Updated
Updated · The Motley Fool · Jul 12
Analyst Favors Amazon, Alphabet Over Microsoft as AWS Grows 28% and Google Cloud Jumps 63%
3 articles · Updated · The Motley Fool · Jul 12
Summary
Amazon and Alphabet are the analyst’s preferred cloud-computing stocks, with Amazon the top pick because AWS growth is reaccelerating and its retail business is adding operating leverage.
AWS revenue rose 28% in the first quarter, helped by AI partnerships with Anthropic and OpenAI, while Amazon’s custom-chip business exceeds a $20 billion run rate and supports lower inference costs.
Alphabet’s case rests on stronger AI infrastructure: Google Cloud revenue surged 63% last quarter, and its Gemini models and TPUs give it lower-cost training and inference plus chip demand from Anthropic.
Microsoft’s Azure still expanded 40% last quarter after 11 straight quarters above 30%, but the stock has fallen 20% in 2026 as investors worry about its reliance on OpenAI models and Nvidia GPUs.
In 2026 performance, Alphabet is up about 13%, Amazon nearly 7%, and Microsoft down 20%, even as all three keep spending heavily on cloud and AI capacity.