Cloud Computing Giants: AWS and Google Outpace Microsoft

The cloud computing sector is experiencing rapid growth due to increasing demand for AI workloads. Among the three major players, Amazon Web Services (AWS) and Google Cloud are seeing their growth rates accelerate.

AWS holds the largest market share but has a slower growth rate at 37% year-over-year in Q2. In contrast, Alphabet's Google Cloud saw its revenue rise 82% year-over-year, making it the fastest-growing cloud business. Microsoft Azure grew at 43%, but its growth rate has been stagnant.

The author believes that Microsoft is on their avoid list due to its slow profit growth and lack of acceleration in its Azure division. In contrast, Amazon and Alphabet are growing at a faster pace, both in terms of cloud computing and overall profits. The author expects AWS and Google Cloud to continue outperforming Microsoft in the coming years.