10 Best Cloud Stocks To Buy According to Hedge Funds

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1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Investors: 286

Amazon.com, Inc. (NASDAQ:AMZN) is the leader with AWS commanding almost a third of the cloud market share. This business grew by 19% y-o-y with the Q3 revenue reaching $27.5 billion. AMZN has leveraged the government spending on tech infra and has been a key provider of services to the US government. In a recent development, AWS has partnered with Booz Allen to ensure a seamless digital transformation for federal agencies. The solutions include cloud deployment, high-performance computing and cybersecurity.

AWS is also looking to make inroads in key growth markets like India, Mexico and the Middle East. The majority of AMZN’s capex of $74 billion in 2024 was directed towards AWS. This number is expected to rise in 2025. Investments for Saudi Arabia, Japan, the US, Europe and India have already been planned out for the next fiscal. The capacity expansion would enhance reliability and at the same time broaden the client base that is currently heavily concentrated towards large enterprises.

While we acknowledge the potential of AMZN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMZN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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