The Better AI Cloud Stock: Microsoft or Amazon?
Both are racing to turn enormous AI spending into cloud profits. But on growth and valuation, one looks like the more compelling buy today.
The Better AI Cloud Stock: Microsoft or Amazon?
Overview
The biggest question hanging over the AI boom is whether the enormous sums invested in it will yield a return. For the two companies that dominate cloud computing, the payoff shows up in their cloud divisions.
Microsoft (NASDAQ: MSFT) runs Azure, and Amazon (NASDAQ: AMZN) runs Amazon Web Services (AWS) -- the two biggest sellers of rented computing power and the platforms turning artificial intelligence (AI) demand into revenue. Together, they plan to spend close to $400 billion on capital expenditures this year, much of it on AI data centers.
Details
Both stocks have lagged the market this year, with Microsoft among the megacaps' biggest laggards, down about 19% year to date as of this writing. Is it the better buy? Or should investors bet on the better-performing stock of the two: Amazon?
Source
Originally published at www.fool.com.
