By Will Healy
Publication Date: 2026-05-05 18:45:00
Microsoft (MSFT 0.54%) and Alphabet (GOOGL +1.35%) (GOOG +1.24%) are locked in a battle to convince you, the investor, which is the better artificial intelligence (AI) company and, by extension, the better stock to own. The two were largely in different businesses for much of their history, but their moves into the cloud have made them competitors.
Of the two, Microsoft is the second-largest cloud company. However, Alphabet’s Google Cloud is in third place, and in the first quarter of 2026, it had the faster-growing cloud segment.
Now, the question for investors may be which AI stock to buy right now. Let’s take a closer look.
Image source: Getty Images.
The case for Microsoft
Microsoft emerged as a major player in the cloud after Satya Nadella, who had previously led Microsoft’s cloud and enterprise group, became CEO in 2014.
Since its flagship Windows and Office businesses had stagnated, Nadella redefined Microsoft as more of a cloud company. The efforts proved successful, and…
