Cloud computing boomed during the 2010s, but growth in this next-gen IT industry is still in the early innings. For years, organizations around the globe have been migrating their operations to the cloud — digital data and services stored within a remote data center and accessed via the internet. However, the rise of remote work during the COVID-19 pandemic accelerated the trend. Now, generative AI has kicked off the next wave of cloud expansion. To list the 12 Best Cloud Computing Stocks to Buy According to Analysts, we conducted extensive research and sifted through several online rankings.

Her work has been featured on leading platforms such as MoneyLion, Yahoo Finance and Benzinga. Despite massive internet growth in the past decade, just over half of marketing spending takes place in a digital format. Digital ads will continue to be a fast-growing industry in the next decade — especially in at-home entertainment as TV and movies move to an on-demand internet streaming format. Zoom is eyeing a bigger piece of the massive global telecom industry by going after large business communications accounts.

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• Snowflake could, nevertheless, be a very promising investment for the long term.
• As per Nasscom Community, quantum computing integration, AI-driven cloud services and multi-cloud, and interoperability are some of the future trends in cloud computing.
• As enterprises accelerate their shift to the cloud, the demand for high-performance infrastructure, spanning semiconductors, networking, and hyperscale data centers, is soaring.
• By contributing Blackwell design elements to the Open Compute Project and expanding support for open networking standards, NVIDIA ensures its ecosystem is deeply embedded in hyperscaler roadmaps.

Cloud computing has revolutionized the way businesses operate, offering increased efficiency, scalability, and cost savings. As a result, the demand for cloud services continues to soar, creating a lucrative investment opportunity. However, not all cloud computer stocks are created equal, and choosing the right ones can be a daunting task. IBM’s cloud revenue jumped 21 percent to $6.5 billion in the first quarter of 2021, accounting for nearly 35 percent of the total revenue. They compete in the market with their hybrid cloud services, a mixture of on-premises and public cloud solutions. The figure represented a year-over-year surge of 32 percent and 12 percent of the company’s quarterly revenue.

These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount. Its DGX Cloud service is rolling out across multiple partners, while Oracle Cloud Infrastructure (OCI) has integrated GB200 NVL72 systems at supercluster scale. The new DGX Cloud Lepton marketplace further aggregates GPU resources from specialized providers, broadening access to large-scale AI compute. By contributing Blackwell design elements to the Open Compute Project and expanding support for open networking standards, NVIDIA ensures its ecosystem is deeply embedded in hyperscaler roadmaps. We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere.

Global X Funds – Global X Cloud Computing ETF

Zoom Phone accounts, a service for transferring calls across different devices, has steadily grown for years. Zoom's contact center services to manage inbound calls and customer contact have also remained a key growth initiative. Paired with the organic growth that Adobe’s legacy offerings still generate, this firm is a top free cash flow generator in the cloud industry. For fiscal years 2020 to 2024, Adobe averaged a free cash flow margin (free cash flow divided by revenue) of 39.8%. Getting notified when a stock gains momentum is a seamless process on our platform. By signing up, you can activate stock alerts that swiftly bring your attention to stocks that experience an impactful across any of the datasets that we are monitoring.

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The list of cloud computing stocks is long and includes big and small players. However, we have picked the top cloud computing stocks based on their performance, size, and future growth potential. To help you make informed investment decisions, Benzinga compiled a list of the best cloud computer stock picks. These companies have demonstrated strong growth potential, solid financials, and a competitive edge in the cloud computing market.

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Precedence Research highlighted that the global cloud computing market size was valued at US$753.11 billion in 2024 and is expected to reach ~US$5,150.92 billion by 2034. Cloud computing enables companies to store their infrastructures remotely using the Internet, ultimately reducing costs and creating value. As per Gartner, worldwide end-user spending on public cloud services is expected to reach $723.4 billion in 2025, reflecting a rise from $595.7 billion in 2024. The use of Al technologies in IT and business operations continues to accelerate the role of cloud computing in helping operations and outcomes. N2 process technology slated for mass production in the second half of 2025 promises further gains in performance per watt. A crucial metric for hyperscale data centers constrained by power and cooling.

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Azure’s share in cloud computing increased from 15 percent in 2018 to 20 percent at the end of 2020. During the same time, AWS’s share dropped from 33 percent to 32 percent, suggesting that Azure has the potential to beat AWS in the coming years. In short, the rapidly growing market share of Azure will certainly benefit cloud stocks Microsoft stock in the coming quarters. Many industry experts believe the demand for cloud services will stay elevated after the pandemic.

• Cloud computing is also closely tied to other tech developments such as mobile 5G networks, the Internet of Things (IoT), and artificial intelligence (AI).
• We know that you’ll walk away from a stronger, more confident, and street-wise trader.
• The growth prospects of cloud computing stocks look bright, with more businesses trying to boost their online presence.
• The best stocks to buy in the Cloud computing category, are Nebius (currently trading at $120.47 with an AI Score of 70) and Rubrik (currently trading at $75.80 with an AI Score of 66).
• It's all about growth for this business right now, and even small changes in management's expectations can cause some wild fluctuations in share price.

ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes. In a new era of AI, ServiceNow could be a big winner, building on its recent success.

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Yet small businesses still make up about half of the global economy’s production. Most are far behind the curve in making the necessary digital transformation. That’s where DigitalOcean comes in, providing a full range of affordable services to help small companies find their way in the new cloud era.

Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. It generates healthy and growing free cash flow, and while it has generated gross profits for years, it booked positive net income for the first time in 2023, reporting diluted EPS of $0.20. Achieving significant bottom-line growth, DigitalOcean reported 2024 diluted net income per share of $0.89. This could be a quality small- to mid-cap stock worth investing in for the long haul. Most IT innovations are developed for and funded by large organizations.

But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +23.93% per year. These returns cover a period from January 1, 1988 through October 6, 2025. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month.