Cloud computing has become an integral part of how we access and manage computing resources, with the industry expected to see significant growth in the coming years. By 2024, the market value for cloud solutions is predicted to reach $1.44 trillion and grow to nearly $2.5 trillion by 2032, showcasing the increasing adoption and utilization of cloud solutions across various industries.
Key factors driving this growth include the recognition among large companies of the benefits of cloud computing, with 94% of businesses worldwide already adopting cloud solutions. This high adoption rate is expected to generate approximately $3 trillion in revenue by 2030.
North America and Europe are currently leading the way in cloud computing adoption, with North America holding the largest share of the global market at 41%. While North America has seen early adoption of technologies like AI and ML, European markets are also showing steady growth in cloud adoption, particularly in countries such as Sweden, Finland, the Netherlands, and Denmark.
In the Asia Pacific region, cloud computing adoption is on the rise, with the market size expected to contribute significantly to the global cloud computing market in the coming years. The region’s shift towards digital business models has been a key driver of cloud adoption, particularly among small and medium-sized enterprises.
To identify the best cloud computing stocks to buy now, Insider Monkey analyzed the holdings of 920 hedge funds as of Q1 2024. Amazon.com, Inc. (NASDAQ:AMZN) stands out as a top performer in the cloud computing space, with 302 hedge fund holders. Amazon’s diversified portfolio includes cloud computing, online advertising, artificial intelligence, and streaming services.
In the first quarter of 2024, Amazon reported strong financial results, with net sales increasing 13% year-over-year and AWS revenue growing 17% year-over-year to $25 billion. Analysts are bullish on Amazon, giving the stock an average rating of “Strong Buy” with an average 12-month price target of $221.55, suggesting over 11% upside potential.
Mar Vista Investment Partners, LLC highlighted Amazon’s increased profitability in its investor letter, noting that strategic cost reductions have led to improved financial performance. The firm believes that Amazon’s investment potential aligns with its projected trajectory of 15-20% intrinsic value growth.
While Amazon ranks as the top cloud computing stock to buy now, investors may also want to consider AI stocks which hold promise for generating higher returns in a shorter period of time. For more information on the best cloud computing and AI stocks to buy, visit the 10 Best Cloud Computing Stocks and Cheapest AI Stocks reports.
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