www.fool.com Open in urlscan Pro
172.64.147.90  Public Scan

Form analysis
0 forms found in the DOM

Text Content

Skip to main contentEnable accessibility for low visionOpen the accessibility
menu








Search
▲ S&P 500 +170% | ▲ Stock Advisor +856% Join The Motley Fool
Accessibility Log In Help
Accessibility Menu
Our Services
Stock Market News angle-down
Stock News
 * Stock Market News
 * Market Movers
 * Tech Stock News
 * Market Trends
 * Consumer Stock News
 * Crypto News
 * Industrial Stock News

Markets
 * Stock Market Indexes Today
 * Most Active Stocks Today
 * Today's Biggest Stock Gainers
 * Today's Biggest Stock Losers
 * Largest Market Cap Companies
 * Market Research
 * 📨 Breakfast News

Best Buys
 * Top Stocks to Buy Now
 * Best ETFs to Buy
 * Best AI Stocks
 * Best Growth Stocks
 * Dividend Kings
 * Best Index Funds
 * Next Cryptos to Explode

Industries to Invest In
 * Technology
 * Energy
 * Real Estate
 * Healthcare
 * Consumer Goods
 * Materials
 * Industrials

How to Invest angle-down
Investing 101
 * How to Invest Money
 * What to Invest In
 * How to Invest in Stocks
 * How to Invest in ETFs
 * How to Invest in Index Funds
 * How to Invest in Bonds
 * Financial Dictionary

Stock Market Basics
 * Stock Market 101
 * Types of Stocks
 * Stock Market Sectors
 * Stock Market Indexes
 * What Are Stock Splits?
 * What Is Compound Interest?
 * After Hours Trading

Start Investing
 * How to Buy Stock
 * Best Brokers for Beginners
 * Best Brokerage Accounts
 * Good Time to Buy Stocks
 * How Many Shares to Buy?
 * Portfolio Diversification
 * Long Term Investing Strategies

Companies to Invest In
 * Magnificent Seven Companies
 * Warren Buffett Investments
 * Investing in ChatGPT
 * Investing in SpaceX
 * Investing in OpenAI
 * Investing in Nvidia
 * Investing in Databricks

Retirement angle-down
Retirement Essentials
 * Retirement 101
 * Types of Retirement Accounts
 * How to Contribute to 401k/IRA?
 * Strategies to Save for Retirement
 * Asset Allocation for My Age
 * Best IRA Brokerage Accounts
 * Withdrawal Rules for 401(k) Plans

Social Security Benefits
 * Social Security 101
 * When to Start Social Security?
 * Full Retirement Age
 * COLAs
 * Calculate Your SS Benefits
 * Collecting Spousal Benefits
 * Maximize Social Security Benefit

Planning for Retirement
 * How Much Do I Need to Retire?
 * When To Retire
 * 401(k) Plans
 * 403(b) Plans
 * Roth IRA Plans
 * IRA Plans
 * HSA Plans

Retired: What Now?
 * Complete Retirement Guide
 * Best & Worst States to Retire
 * Average Retirement Savings
 * Moving for Retirement
 * Healthcare in Retirement
 * Understanding Taxes in Retirement
 * 401(k) Minimum Distributions

Personal Finance angle-down
Credit Cards
 * Best Credit Cards
 * Compare Credit Cards
 * Credit Card Reviews
 * Credit Card Guides and Tools

Bank & Loans
 * Best Savings Accounts
 * Bank Reviews
 * Best Personal Loans
 * Personal Loan Reviews

Homebuying
 * Best Mortgage Lenders
 * Current Mortgage Rates
 * Mortgage Lender Reviews
 * Guide to Mortgages

Insurance
 * Auto Insurance
 * Home Insurance
 * Life Insurance
 * Pet Insurance

About Us angle-down
Our Purpose:
To make the world smarter, happier, and richer.

Founded in 1993, The Motley Fool is a financial services company dedicated to
making the world smarter, happier, and richer. The Motley Fool reaches millions
of people every month through our premium investing solutions, free guidance and
market analysis on Fool.com, personal finance education, top-rated podcasts, and
non-profit The Motley Fool Foundation.

Who Is the Motley Fool?
 * About Us
 * Contact Us
 * Investing Philosophy
 * Motley Fool Money
 * The Motley Fool Foundation
 * Reviews
 * Newsroom

Fool Podcasts
 * Podcasts Home
 * Motley Fool Money
 * Rule Breaker Investing

Social Media
 * Facebook
 * Twitter
 * YouTube
 * Discussion Boards
 * CAPS - Stock Picking Community

Other Services
 * Become an Affiliate Partner
 * Publishing Standards

Top Stocks for 2025 ›
Bars Times


Search
 * Our Services
 * Stock Market News
   angle-down angle-up
   Stock News
    * Stock Market News
    * Market Movers
    * Tech Stock News
    * Market Trends
    * Consumer Stock News
    * Crypto News
    * Industrial Stock News
   
   Markets
    * Stock Market Indexes Today
    * Most Active Stocks Today
    * Today's Biggest Stock Gainers
    * Today's Biggest Stock Losers
    * Largest Market Cap Companies
    * Market Research
    * 📨 Breakfast News
   
   Best Buys
    * Top Stocks to Buy Now
    * Best ETFs to Buy
    * Best AI Stocks
    * Best Growth Stocks
    * Dividend Kings
    * Best Index Funds
    * Next Cryptos to Explode
   
   Industries to Invest In
    * Technology
    * Energy
    * Real Estate
    * Healthcare
    * Consumer Goods
    * Materials
    * Industrials
 * How to Invest
   angle-down angle-up
   Investing 101
    * How to Invest Money
    * What to Invest In
    * How to Invest in Stocks
    * How to Invest in ETFs
    * How to Invest in Index Funds
    * How to Invest in Bonds
    * Financial Dictionary
   
   Stock Market Basics
    * Stock Market 101
    * Types of Stocks
    * Stock Market Sectors
    * Stock Market Indexes
    * What Are Stock Splits?
    * What Is Compound Interest?
    * After Hours Trading
   
   Start Investing
    * How to Buy Stock
    * Best Brokers for Beginners
    * Best Brokerage Accounts
    * Good Time to Buy Stocks
    * How Many Shares to Buy?
    * Portfolio Diversification
    * Long Term Investing Strategies
   
   Companies to Invest In
    * Magnificent Seven Companies
    * Warren Buffett Investments
    * Investing in ChatGPT
    * Investing in SpaceX
    * Investing in OpenAI
    * Investing in Nvidia
    * Investing in Databricks
 * Retirement
   angle-down angle-up
   Retirement Essentials
    * Retirement 101
    * Types of Retirement Accounts
    * How to Contribute to 401k/IRA?
    * Strategies to Save for Retirement
    * Asset Allocation for My Age
    * Best IRA Brokerage Accounts
    * Withdrawal Rules for 401(k) Plans
   
   Social Security Benefits
    * Social Security 101
    * When to Start Social Security?
    * Full Retirement Age
    * COLAs
    * Calculate Your SS Benefits
    * Collecting Spousal Benefits
    * Maximize Social Security Benefit
   
   Planning for Retirement
    * How Much Do I Need to Retire?
    * When To Retire
    * 401(k) Plans
    * 403(b) Plans
    * Roth IRA Plans
    * IRA Plans
    * HSA Plans
   
   Retired: What Now?
    * Complete Retirement Guide
    * Best & Worst States to Retire
    * Average Retirement Savings
    * Moving for Retirement
    * Healthcare in Retirement
    * Understanding Taxes in Retirement
    * 401(k) Minimum Distributions
 * Personal Finance
   angle-down angle-up
   Credit Cards
    * Best Credit Cards
    * Compare Credit Cards
    * Credit Card Reviews
    * Credit Card Guides and Tools
   
   Bank & Loans
    * Best Savings Accounts
    * Bank Reviews
    * Best Personal Loans
    * Personal Loan Reviews
   
   Homebuying
    * Best Mortgage Lenders
    * Current Mortgage Rates
    * Mortgage Lender Reviews
    * Guide to Mortgages
   
   Insurance
    * Auto Insurance
    * Home Insurance
    * Life Insurance
    * Pet Insurance
 * About Us
   angle-down angle-up
   Who Is the Motley Fool?
    * About Us
    * Contact Us
    * Investing Philosophy
    * Motley Fool Money
    * The Motley Fool Foundation
    * Reviews
    * Newsroom
   
   Fool Podcasts
    * Podcasts Home
    * Motley Fool Money
    * Rule Breaker Investing
   
   Social Media
    * Facebook
    * Twitter
    * YouTube
    * Discussion Boards
    * CAPS - Stock Picking Community
   
   Other Services
    * Become an Affiliate Partner
    * Publishing Standards
   
   Our Purpose:
   To make the world smarter, happier, and richer.
   
   Founded in 1993, The Motley Fool is a financial services company dedicated to
   making the world smarter, happier, and richer. The Motley Fool reaches
   millions of people every month through our premium investing solutions, free
   guidance and market analysis on Fool.com, personal finance education,
   top-rated podcasts, and non-profit The Motley Fool Foundation.
 * Log In
 * Help
 * Join The Motley Fool

Top Stocks for 2025 ›
Free Article
You’re reading a free article with opinions that may differ from The Motley
Fool’s Premium Investing Services. Become a Motley Fool member today to get
instant access to our top analyst recommendations, in-depth research, investing
resources, and more. Learn More


THE TOP AI CLOUD COMPUTING STOCKS FOR 2025

By Geoffrey Seiler – Jan 15, 2025 at 6:15AM

Key Points

 * Amazon was instrumental in creating cloud computing and is the market-share
   leader.
 * Microsoft is investing heavily in data centers to meet demand.
 * Alphabet's Google Cloud has been the fastest-growing cloud computing company.
 * Buy Alert: Our 10 best stocks to buy right now (see the list)


NASDAQ: AMZN


AMAZON



Market Cap
$2,290B

Today's Change
Arrow-Thin-Down
(1.51%) $3.30
Current Price
$221.06
Price as of January 15, 2025, 11:51 a.m. ET


One of the areas that has most benefited from the advent of artificial
intelligence (AI) has been cloud computing. As organizations look to customize
AI models and applications to fit their needs, they have been increasingly
turning to these companies to help them.

Let's look at the three big companies that dominate this industry.


1. AMAZON

Amazon (AMZN 1.51%) created the cloud computing industry back in 2006 when it
launched Amazon Web Services (AWS). It was a way to help partners and affiliates
get their server infrastructure up and running more quickly in order for them to
launch their own e-commerce platforms. Today, the company holds about a 31%
market share in the cloud computing space and AWS is the company's largest
business by profitability.

Arrows-In Collapse



NASDAQ: AMZN

Amazon
Today's Change
(1.51%) US$3.30
Current Price
US$221.06
Arrow-Thin-Down
YTD1w1m3m6m 1y
+43.54%
5y
Price VS S&P
AMZN


KEY DATA POINTS

Market Cap
$2,290B
Day's Range
US$220.96 - US$223.47
52wk Range
US$149.91 - US$233.00
Volume
11,646,269
Avg Vol
37,643,337
Gross Margin
48.41%
Dividend Yield
N/A

AWS has been Amazon's fastest-growing business as well, with revenue growth of
19% last quarter to $27.5 billion. Meanwhile, the segment's operating income
soared nearly 49% to $10.4 billion. It noted that AI-related revenue soared by
triple-digit percentages.

The company has been seeing success with its Bedrock and SageMaker solutions.
Bedrock provides customers with an array of foundational AI models they can use
as a starting point, while SageMaker lets them build and train their AI models
and then helps move them into production. Amazon also has developed its own
custom AI chips for AI training and inference.



Outside of cloud computing, Amazon is the leading e-commerce and logistics
company in the world. Its e-commerce continues to be a solid growing business,
while it is using AI to help run the business more efficiently.

The stock currently trades at a forward price-to-earnings (P/E) ratio of just
under 29 times next year's analyst estimates, which is a discount to where it
has traded in past years. The company has always shown a willingness to spend
money to win, and with AI and cloud computing it should be no different.


ARE YOU MISSING THE MORNING SCOOP?

Start your day ahead of the game with the market’s top stories and key investing
insights. Breakfast News delivers it all in a quick, Foolish, and free daily
newsletter that lands in your inbox every market morning.

Sign Up For Free ›

Image source: Getty Images.


2. MICROSOFT

Microsoft (MSFT 2.25%) was one of the first big tech companies to embrace
generative AI through its large investment and partnership with OpenAI. The unit
that has most benefited from this partnership has been Azure, which is the No. 2
leading cloud computing company with a 20% market share.

Last quarter (fiscal Q1), Azure revenue climbed 33%, with Microsoft saying Azure
OpenAI usage doubled in the past six months. The company has credited its strong
growth to customers building their own AI agents and copilots on the Azure
platform, with growth accelerating as it helped move customer apps from test to
production. In addition, this is leading to more usage of its data and analytics
services, Azure Cosmos DB and Azure SQL DB.


Arrows-In Collapse



NASDAQ: MSFT

Microsoft
Today's Change
(2.25%) US$9.37
Current Price
US$425.04
Arrow-Thin-Down
YTD1w1m3m6m 1y
+7.53%
5y
Price VS S&P
MSFT


KEY DATA POINTS

Market Cap
$3,090B
Day's Range
US$418.26 - US$427.42
52wk Range
US$384.81 - US$468.35
Volume
6,504,854
Avg Vol
20,915,202
Gross Margin
69.35%
Dividend Yield
0.74%

Microsoft said Azure's revenue growth could have been even more if not for
capacity constraints, and it expects revenue to accelerate in its fiscal second
half as more capacity comes online. The company is aggressively investing in
adding AI infrastructure, recently saying it would spend approximately $80
billion on new AI data centers in 2025.

Beyond the cloud, Microsoft is the leader in workplace productivity software
with programs such as Word, Excel, and Outlook, as well as in personal computer
(PC) operating systems with Windows. The company has a large opportunity with
its AI assistant Copilots, which it sells as a $30 per month per enterprise user
add-on to its Microsoft 365 subscription. These Copilots can greatly help
increase worker efficiency and save time.

The stock currently trades at a forward P/E of just under 32 times this year's
fiscal (ending June 2025) analyst estimates, which is a reasonable valuation
given the opportunities in front of it.


3. ALPHABET

While Alphabet's (GOOGL 2.15%) (GOOG 2.05%) Google Cloud is the smallest of the
big three cloud computing companies with a 12% market share, it has been the
fastest growing. Last quarter, the unit grew revenue by 35% to $11.4 billion.
More importantly, the business has seen a profitability inflection point, with
its segment operating income soaring from $266 million a year ago to $1.95
billion last quarter.



Similar to the other big cloud computing companies, Alphabet said its cloud
computing growth is being driven by customers using its AI platform to build and
customize their own AI models and applications using both Gemini and third-party
foundational models. It noted that Gemini application programming interface
(API) requests have surged 14x over the past six months. It also called out the
traction it was seeing with AI in its BigQuery data platform and AI-powered
cybersecurity solutions.

Arrows-In Collapse



NASDAQ: GOOGL

Alphabet
Today's Change
(2.15%) US$4.08
Current Price
US$193.74
Arrow-Thin-Down
YTD1w1m3m6m 1y
+34.55%
5y
Price VS S&P
GOOGL


KEY DATA POINTS

Market Cap
$2,322B
Day's Range
US$191.86 - US$194.77
52wk Range
US$130.66 - US$201.42
Volume
7,016,363
Avg Vol
27,823,002
Gross Margin
57.89%
Dividend Yield
0.32%

It has also been able to lower costs and reduce processing times through its use
of combining its customized tensor processing units (TPUs) with graphic
processing units (GPUs). On its last earnings call, it highlighted that one
customer was able to lower its costs by 72% and processing times by 50%.

Outside of cloud computing, Alphabet is the leader in digital advertising
through its Google search engine and YouTube streaming platform, which is the
most viewed video platform in the world. The company also is helping lead the
way in a variety of fields, including autonomous driving (Waymo), AI video
generation (Veo 2), and quantum computing (with its Willow chip).

The stock is attractively priced, trading at a forward P/E of just under 18.7
times next year's analyst estimates. Given the opportunities in front of the
company, that looks like a bargain.


WHERE SHOULD YOU INVEST $1,000 RIGHT NOW?

Before you put a single dollar into the stock market, consider this:

The Motley Fool Stock Advisor Canada analyst team has identified what they
believe are the 15 best stocks for investors to buy now. The 15 stocks that made
the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you
invested $1,000 in the “eBay of Latin America” at the time of our
recommendation, you’d have $17,733.03!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for
success, including guidance on building a portfolio, regular updates from
analysts, and two new stock picks each month – one from Canada and one from the
U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX
Composite Index by 36 percentage points since 2013*.



See the 15 Stocks



*Returns as of 12/26/24

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board
of directors. John Mackey, former CEO of Whole Foods Market, an Amazon
subsidiary, is a member of The Motley Fool's board of directors. Geoffrey Seiler
has positions in Alphabet. The Motley Fool has positions in and recommends
Alphabet, Amazon, and Microsoft. The Motley Fool recommends the following
options: long January 2026 $395 calls on Microsoft and short January 2026 $405
calls on Microsoft. The Motley Fool has a disclosure policy.


5 STOCKS UNDER $50 [FREE REPORT] 

We hear it over and over from investors, “I wish I had bought Amazon or Netflix
when they were first recommended by the Motley Fool. I’d be sitting on a gold
mine!” And it’s true. 

And while Amazon and Netflix have had a good run, we think these 5 other stocks
are screaming buys. And you can buy them now for less than $50 a share! 

You can grab a copy of “5 Growth Stocks Under $50” for FREE for a limited time
only.

Get Your Free Report

Related Articles

If I Could Own Only 1 Artificial Intelligence Stock, This Would Be It
Prediction: This Will Be Wall Street's First $5 Trillion Company -- and It's Not
Nvidia
Prediction: 2 AI Stocks Will Be Worth More Than Nvidia by Year-End in 2025
Meet the Incredible Artificial Intelligence (AI) Stock That Could Pass Apple,
Nvidia, and Microsoft on Its Way to a $5 Trillion Valuation by 2030
Prediction: This Company Will be 1 of the Biggest Winners of the AI Agent Boom
856%

Motley Fool Returns

Market-beating stocks from our flagship service.

Stock Advisor Returns
856%

S&P 500 Returns
170%

Calculated by average return of all stock recommendations since inception of the
Stock Advisor service in February of 2002. Returns as of 01/15/2025.

Discounted offers are only available to new members. Stock Advisor list price is
$199 per year.

Join Stock Advisor
Cumulative Growth of a $10,000 Investment in Stock Advisor

Calculated by Time-Weighted Return since 2002. Volatility profiles based on
trailing-three-year calculations of the standard deviation of service investment
returns.




PREMIUM INVESTING SERVICES

Invest better with The Motley Fool. Get stock recommendations, portfolio
guidance, and more from The Motley Fool's premium services.

View Premium Services

Making the world smarter, happier, and richer.

 * Facebook Facebook
 * Twitter Twitter
 * Linked In LinkedIn
 * Pinterest Pinterest
 * YouTube YouTube
 * Instagram Instagram
 * Tiktok TikTok

© 1995 - 2025 The Motley Fool. All rights reserved.

Market data powered by Xignite and Polygon.io.

About The Motley Fool

 * About Us
 * Careers
 * Research
 * Newsroom
 * Contact
 * Advertise

Our Services

 * Stock Advisor
 * Epic
 * Epic Plus
 * Fool Portfolios
 * Fool One
 * Motley Fool Money

Around the Globe

 * Fool UK
 * Fool Australia
 * Fool Canada

Free Tools

 * CAPS Stock Ratings
 * Discussion Boards
 * Calculators
 * Financial Dictionary

Affiliates & Friends

 * Motley Fool Asset Management
 * Motley Fool Wealth Management
 * Motley Fool Ventures
 * Motley Fool Foundation
 * Become an Affiliate Partner

 * Terms of Use
 * Privacy Policy
 * Disclosure Policy
 * Accessibility Policy
 * Copyright, Trademark and Patent Information
 * Terms and Conditions
 * Do Not Sell My Personal Information

Current


This website uses cookies to deliver our services and to analyze traffic. We
also share information about your use of our site with advertising and other
partners. Privacy Policy
Got it
Cookie Settings