By Daniel Sparks
Publication Date: 2025-12-26 17:00:00
Key Points
Amazon and Microsoft have both seen their cloud revenue growth accelerate recently.
Both companies are spending massive sums of money to capture soaring demand for AI computing.
One stock’s valuation arguably looks more attractive.
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Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) enter 2026 with the same headline tailwind: enterprises are rebuilding their tech stacks around cloud computing and generative AI (artificial intelligence). Even more, they have similar headwinds: the capital-intensive nature of building out AI infrastructure — and more AI demand than they can handle (or is that a tailwind?).
Regardless, these are two great companies with stocks likely to perform well over the long haul, but one looks slightly more attractive than the other.
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