Amazon, Microsoft and Alphabet recommended as core cloud AI stocks
Amazon, Microsoft and Alphabet were presented as leading AI stocks to hold for the next 10years. The main rationale was the growth in cloud revenue and large-scale data center investments by the three companies.
An article selected Amazon, Microsoft and Alphabet as key AI-related stocks worth holding for the next 10years. The growth of the three companies’ cloud businesses was presented as the strongest reason for the recommendation. Specific figures are compiled in the article.
Amazon’s cloud business AWS accounts for 59% of operating profit. AWS revenue increased 28% year on year. The article concluded that AWS’s growth and profitability play a key role in Amazon’s overall performance.
Microsoft’s cloud platform Azure saw revenue grow 40% year on year. The article presented Azure’s growth rate as a basis for investment decisions. It also mentioned Microsoft’s expansion of its cloud infrastructure.
Alphabet's Google Cloud reported year-on-year 63% growth. The article stated that Google Cloud is expanding sales of custom AI chips. It explained that this product diversification is a growth driver.
The article stated that the three companies are investing tens of billions of dollars in data center infrastructure. It projected that these investments would translate into long-term returns. All three companies emphasized that cloud expansion is a key pillar of their AI strategies.
Sources: The Motley Fool
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