Amazon, Alphabet Top Microsoft in Cloud Stock Picks as Azure Grows 40% and Google Cloud 63%
Updated
Updated · The Motley Fool · Jul 12
Amazon, Alphabet Top Microsoft in Cloud Stock Picks as Azure Grows 40% and Google Cloud 63%
3 articles · Updated · The Motley Fool · Jul 12
Summary
Amazon and Alphabet were favored over Microsoft in a fresh comparison of the three biggest cloud stocks, with Amazon named the top single pick despite Microsoft’s strong Azure growth.
Amazon’s case rests on AWS reaccelerating to 28% growth, a custom-chip business running above $20 billion, and retail operating leverage that leaves the stock trading below 25 times 2027 earnings estimates.
Alphabet’s edge comes from Gemini and its in-house TPUs, which helped Google Cloud post 63% revenue growth last quarter and support lower AI costs than rivals relying more heavily on Nvidia GPUs.
Microsoft’s Azure still expanded 40% in fiscal Q3 and demand exceeds supply, but concerns center on its heavier dependence on OpenAI models and pricier external chips even as the stock trades at 17 times 2027 estimates.
The comparison underscores how investors are weighing AI infrastructure ownership and monetization paths—not just cloud growth rates—across the sector’s three dominant players.