Amazon vs. Microsoft: 1 Key Metric Identifies the Superior Artificial Intelligence (AI) Cloud Stock
Yahoo Finance ·
Amazon ( AMZN +1.54% ) and Microsoft ( MSFT +2.68% ) are two of the largest cloud computing providers. But which one of these hyperscalers makes for the better buy? I think there's one key metric that separates the two firms, and once you recognize it, it will be hard to consider investing in the other. In terms of market share, Amazon Web Services (AWS) is the largest cloud computing provider in the world, with Microsoft Azure coming in second. That makes both firms very important, but of the two, it's pretty clear Amazon is growing at a faster pace. At first glance, that analysis seems wrong. In their latest quarters, Azure grew by 43%, while AWS grew by 37%. But that's not what I'm talking about. I'm looking more at the trend lines, and it's clear that AWS' growth is accelerating rapidly. During Q1, AWS's growth rate was 28%. In Q4 2025, its growth rate was 24%. Rewinding to Q3 2025, its growth rate was 20%. That's some rapid acceleration over the past year, and considering Amazon is still pouring hundreds of billions of dollars into expanding its cloud computing capacity, I won't be surprised to see AWS' growth rate continue to accelerate over the next few quarters.
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