Amazon and Microsoft Lead the Cloud Market. One of Them Has Far Greater Upside. | The Motley Fool

Following the midterm elections and sweeping victories by candidates opposed to artificial intelligence (AI) data centers, there has been a lot of debate about which AI companies are best positioned in this new political climate.

However, the general consensus seems to be that leading cloud computing companies with strong businesses, like Amazon (AMZN -1.47%) and Microsoft (MSFT -2.06%), are well positioned to benefit. Of these two, I think Amazon has a lot more upside. Here’s why.

Cloud leaders

Amazon Web Services (AWS) and Microsoft’s Azure are the two largest cloud providers. With the rise of AI, both companies have seen their cloud computing businesses take off.

Microsoft has recorded 13 straight quarters of 30% or more Azure growth, with a 48% increase last quarter to $33.2 billion. AWS has seen its growth accelerate to its fastest level in nearly five years, climbing 39% to $46 billion last quarter.