The 3 Best Cloud Computing Stocks to Buy in August 2024

Stocks to buy

The global cloud computing market is set to triple by 2031 to hit $2.22 trillion. However, unlike other tech sectors, where new entrants have disrupted the market and given the old brands a run for their money, the cloud computing sector seems different. The best cloud computing stock continue to dominate the market.

These three cloud computing stocks have significantly improved since the beginning of the year. They show great prospects to outperform the industry growth heading to the end of the year. By investing in cutting-edge AI technologies to improve the benefits and efficiencies of cloud storage, these cloud computing stocks are every investor’s dream.

These three stocks have amazing potential skyrocket in value in the coming months. Let’s look at their newest AI capabilities and increased growth and expansion. These will guarantee their further growth in August 2024. 

Super Micro Computer (SMCI)

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Super Micro Computer (NASDAQ:SMCI) provides high-performance, high-efficiency servers and storage technologies. Unlike many cloud computing stocks, SMCI primarily builds the servers that enable other tech companies to build cloud computing infrastructure. 

As the tech industry expands and the demand for servers grows, SMCI has seized this opportunity to meet the increasing market demands. 

SMCI stock has more than tripled since the beginning of the year after being added to the S&P 500 index earlier this year. It has since topped the S&P 500 index. It was the best-performing stock in Q1 and Q2, even better than Nvidia (NASDAQ:NVDA) and other S&P 500 household names.

In July, it was announced that SMCI would be added to the Nasdaq 100 index, replacing Walgreens Boots Alliance (NASDAQ:WBA), which had had a tumultuous run since the beginning of the year. 

The listing is expected to boost SMCI’s stock to a record high as it will attract new investments from mutual funds and exchange-traded funds that follow the Nasdaq 100 index.

Alphabet (GOOG, GOOGL)

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Alphabet (NASDAQ:GOOG, GOOGL) was a late entrant in the cloud computing market, launching Google Cloud way later after Amazon (NASDAQ:AMZN) AWS. However, Google Cloud has grown fast over the years. It used acquisitions and AI to offer some of the industry’s most advanced cloud computing packages.

Google Cloud just turned profitable last year, and beat expert estimates in both Q1 and Q2 reportings. In Q1, Google Cloud reported a revenue of $9.57 billion, beating Wall Street’s estimate of $9.35 billion

In Q2, the stock reported a revenue stream of $10.35 billion, beating estimates of $10.2 billion. The Q2 revenue earrings also represented over $ 2 billion or 29% increase YOY. 

Google Cloud is also rushing to integrate AI technology into its cloud computing products and services. Its generative AI, BigQuery, recently ranked the best in the Forrester Wave: Data Lakehouses, Q2 2024.

In addition to AI capabilities, Google Cloud has also adopted an aggressive acquisition strategy to catch up with the fast-paced cloud computing industry. Alphabet recently announced it was acquiring a privately held cybersecurity firm, Wiz.

The $23 billion deal, if completed, will be Alphabet’s biggest ever. It will take Google Cloud’s cloud computing to the next level. With all these strategies and promising financial prospects, GOOG stands out as one of the best cloud computing stocks to buy in August 2024. 

Amazon (AMZN)

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Amazon (NASDAQ:AMZN) is known for its e-commerce platform, but it was the first cloud computing stock. Its Amazon Web Services (AWS) was first founded in 2002, starting the now multi-billion dollar cloud computing industry. 

AWS offers a wide range of on-demand cloud computing platforms and APIs. They are available to individuals, companies, and governments on a pay-as-you-go basis. These cloud computing products and services include databases, storage, machine learning, compute power, networking, and analytics. 

Amazon’s AWS has delivered impressive results in recent years.  The cloud computing stock reported a 2024 Q1 net sale increase of 13% to $143.3 billion. Its net income increased to $10.4 billion in the same first quarter, or $0.98 per diluted share, compared with $3.2 billion, or $0.31 per diluted share, in the first quarter of 2023.

With the projected growth and expansion of the cloud computing industry and AWS’s current growth trajectory, any investor would consider AWS among the best cloud computing stocks to buy in August. 

On the date of publication, Joel Lim did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Joel Lim is a contributor at InvestorPlace.com and a finance content contractor who creates content for several companies like LTSE and Realtor, along with financial publications, including Business Insider, Yahoo Finance, Mises Institution and Foundation for Economic Education.

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