Amazon and Microsoft Solidify AI Leadership in Cloud Services
Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) lead the global cloud services market with shares of 29% and 22%, respectively. Last year, Amazon generated approximately $638 billion in revenue with over $59 billion in profits, while Microsoft reported revenue of $245 billion with earnings exceeding $88 billion. Both companies are heavily investing in artificial intelligence, with notable partnerships including Amazon’s $8 billion investment in Anthropic and Microsoft’s backing of OpenAI.
Despite high valuations—Amazon at a forward price-to-earnings ratio of 34.6, and Microsoft at 33.2—these companies provide financial stability and growth potential, making them appealing to risk-averse investors. Amazon’s e-commerce market share stands at 37.6%, and Microsoft’s Windows OS covers 70% of desktop systems, highlighting their dominance beyond cloud services.
While both companies face competition and regulatory risks, their combined lifetime gains are impressive, approximately 227,800% for Amazon and 123,200% for Microsoft. This positions them as strong candidates for those looking to invest in the AI boom.
