With the start of a new burgeoning bull market, now is the time to consider the best millionaire-maker cloud computing stocks. Over the last decade, cloud computing has provided tremendous benefits to business operations. Some of the benefits include increased collaboration, scalability, cost-effectiveness and data security.
Investors who seek to capitalize on this investing trend have a number of options to choose from. However, they must select companies who have strong liquidity and are best positioned to meet the evolving demands of the market. According to Grand View Research, the cloud computing market was last valued at $483.98 billion, estimated at a 14.1% CAGR from 2023 – 2030. As small, medium and large enterprises look to improve business performance, cloud computing is set for explosive growth over the next decade.
Now, let’s discuss the three best millionaire-maker cloud computing stocks to buy for 2024!
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is synonymous when it comes to the cloud computing market. Its cloud computing platform includes a number of different services ranging from AI and machine learning, data storage, data analytics and networking. Alphabet’s stock is up 46% YTD on the back of strong revenue and EPS growth.
Over the last decade, Alphabet has been investing significant CAPEX into cloud computing. Since 2008, its cloud computing business has remained unprofitable. But things are starting to change, after the company reported its first operating profit in the cloud business in Q1 2023. Google’s cloud operating income was $266 million, compared to a loss of $440 million in the year prior. CEO Sundar Pichai has also been ramping up AI driven initiatives in order to accelerate advertising revenue in Google Search and YouTube. As AI continues to drive the cloud industry forward, Alphabet is one of the best cloud computing stocks to buy for 2024.
Amazon (NASDAQ:AMZN) is having a transformative year and the stock is up more than 70% YTD. The company’s wholly owned subsidiary, Amazon Web Services (AWS), is currently the largest cloud computing company in the world. As of Q2 2023, AWS holds a 32% market share in the cloud infrastructure services market.
After a year of slow growth in 2022, the company has refocused its efforts on cost-cutting and generative AI. Its cloud business has been seeing strong double digit growth, thanks to generative AI deployments through Amazon Bedrock. In Q3 2023, AWS revenue increased 12% YOY to $23.1 billion. CEO Andy Jassy is bullish on the long term prospects of generative AI. Amazon’s first-generation AWS Inferentia chip will accelerate generative AI and LLM’s in the cloud. With operating income and FCF on the rise, now is a good time to scoop up shares before the new year.
Microsoft (NASDAQ:MSFT) is on a tear this year and Microsoft Azure is driving increased visibility for its generative AI services. Azure is currently seeing high double digit growth in the 2023 fiscal year. After reporting its Q1 FY24 financial results, Microsoft has been focused on Azure cloud deployment.
The company has increased capex to meet the growing demands of generative AI services. CEO Satya Nadella said the company has been integrating AI across all levels of its technology stack. During the quarter, revenue in the intelligent cloud was $24.3 billion, up 19% YOY. Azure and other cloud revenue services also grew 29%. As Alex Sirois notes from InvestorPlace.com, Microsoft’s AI investments are already paying off. This has been evident as net income grew 27% YOY to $22.3 billion. If you’re bullish on the long-term growth prospects of generative AI, Microsoft is among the best millionaire-maker cloud computing stocks to buy.
On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.