Oracle vs. Amazon: Which Is the Better AI Cloud Stock to Own for the Next 5 Years? | The Motley Fool

When it comes to cloud stocks, Oracle (ORCL +3.10%) and Amazon (AMZN -0.57%) are among the industry’s leaders.

Oracle’s surging backlog initially lifted its stock, but the scope of its relationship with OpenAI cast doubt on the security of much of that future expected business. In contrast, Amazon pioneered and continues to lead the cloud industry, though it faces increasing competition from companies building AI-specific cloud environments.

Fortunately, AI is likely here to stay, and Grand View Research forecasts a compound annual growth rate of 40.8% for the generative AI market through 2033. Also, both companies appear well-positioned to benefit from that growth over time.

However, one of these cloud stocks will likely benefit significantly more than the other over the next five years.

Oracle’s current situation

Oracle came to the cloud infrastructure race at a relatively late date. Investors previously knew it best for its relational database…