The 3 Best Cloud Computing Stocks to Buy in Q2 2024


  • Here are three of the best cloud computing stocks to buy now. 
  • Microsoft (MSFT): Few have invested more in generative AI. 
  • Amazon (AMZN): It invested another $2.5 billion in AI startup Anthropic.  
  • (AI): The company’s commitment to generative AI is helping growth.
Best Cloud Computing Stocks to Buy - The 3 Best Cloud Computing Stocks to Buy in Q2 2024

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If you’re considering the best cloud computing stocks to buy, you might want to read a February article from InfoWorld contributor David Linthicum that details why companies are leaving the cloud. 

Linthicum is a computer industry expert who’s not just written numerous books about it, his latest published in 2023 focuses on cloud computing, but he has extensive his industry experience. He has served in roles such as CTO and CEO of several software companies.

His argument about why UK companies are moving their cloud-based workloads back to on-premises infrastructure is very straightforward. 

“The cloud is a good fit for modern applications that leverage a group of services, such as serverless, containers, or clustering. However, that doesn’t describe most enterprise applications,” Linthicum wrote on Feb. 9. 

While public cloud providers are losing business as enterprises return to on-premises infrastructure, they’ll gain hugely from generative AI applications and data. 

With this in mind, here are three of the best cloud computing stocks to buy. 

Microsoft (MSFT)

The Microsoft logo outside a building representing MSFT stock.
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Microsoft (NASDAQ:MSFT) is one of the world leaders in cloud computing through Azure, the company’s cloud computing platform. In Q2 2024, Microsoft’s Cloud revenue was $33.7 billion, 24% higher than Q2 2023, a fair chunk of it from Azure. For example, Microsoft’s Azure AI had 53,000 customers at the end of the second quarter, CEO Satya Nadella said during its conference call, one-third of them completely new to Azure. 

I’m pretty confident that Linthicum is 500 times brighter than myself regarding anything computer-related. However, based on what he wrote in his InfoWorld commentary, I would bet dollars to donuts, and he’d agree that Microsoft will be one of the long-term beneficiaries of generative AI and the public cloud.

I’ve read articles about Microsoft making lots of money while customers gain little.

Fortune reported comments from GitHub COO Kyle Daigle in early February about AI.  

“Daigle said the companies finding the most success implementing Copilot are those that are integrating it into their workflows and not just adding an AI button or chatbot window because it’s the hot thing to do.” Fortune contributor Sage Lazzaro wrote on Feb. 1.

Microsoft will figure out how to make its clients happy.   

Amazon (AMZN)

An image on the Amazon logo on a phone, held in front of a stock chart to represent Amazon stock
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Amazon (NASDAQ:AMZN) has a massive cloud business through AWS. Nashville-based recently rated the top 20 generative AI companies in 2024. Amazon made the list. Not surprisingly, many of the names were private companies. Expect many of them to go public or acquire in the next few years. 

eWeek said Amazon was the best for generative AI as a service. 

“AWS’s customers for generative AI range from small startups to major enterprises and brands like Intuit, Nasdaq, Adidas, and GoDaddy. In addition to its managed services and knowledgeable in-house support specialists, customers can benefit from a diverse partner network and the AWS Marketplace,” eWeek stated on March 14. 

It offers four AI solutions: Amazon Bedrock, Amazon SageMaker, Amazon Q, and Amazon CodeWhisperer. I won’t be checking out the last one anytime soon, but I digress.

It also invested another $2.5 billion in Anthropic, bringing its total investment in the AI startup to $4.0 billion. Anthropic uses AWS for the cloud and some of the company’s specialized computing chips. Expect more developments in the future. 

What I love about Amazon is that it’s always looking for large revenue generators for the long haul. It’s willing to spend obscene money if it sniffs a massive market. They don’t get much bigger than generative AI.

Just as it’s turned advertising into a significant revenue generator, it will likely do the same with AI sooner than investors realize. (AI)

C3IoT (AI) website displayed on a modern smartphone
Source: Piotr Swat /

When I first saw the name (NYSE:AI), I thought it was a fly-by-night operation. Investors still doubt whether it’s got the right stuff when it comes to AI. This apprehension is reflected in the share price. It’s down more than 5% in 2024 and up just 6% over the past year despite AI being the hottest thing since sliced bread. 

Even when it reported better-than-expected third-quarter results at the end of February, it couldn’t hang on to the 25% single-day gain on the news. The day before announcing earnings, its share price closed at $29.69. It’s down 8.8% in the month since. 

However, Siebel’s got the company focused squarely on generative AI. It mentions the two words 18 times in its Q3 2024 press release. 

The company’s press release stated, “C3 Generative AI continues to gain traction with organizations that rely on technology solutions to produce accurate information and process highly sensitive data.” 

Long story short, it continues to grow revenues by double digits each quarter while losing millions on a non-GAAP basis.

It’s the riskiest of the three cloud computing stocks. If you’re an aggressive investor, the risk/reward proposition suggests it’s worth a small bet.  

On the date of publication, Will Ashworth 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 Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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