The 3 Best Cloud Computing Stocks to Buy in April 2024

Stocks to buy

The best cloud computing stocks may have taken a backseat to some of the higher-flying artificial intelligence (AI) stocks, specifically those in the semiconductor scene. Still, many leading cloud players also stand to gain from continued interest and investment in AI-related things.

From the massive public cloud players to some less obvious plays focusing heavily on their AI-focused data center capabilities, cloud computing plays are definitely still worth following. Further, the cloud may actually be a source of reasonable valuations as investors begin to insist on some of the AI-at-a-reasonable-price (a potential variant of GARP?) types of plays. As AI’s influence works its way into other tech sub-sectors, I think growth rates could be in a spot to surprise over the next year or two.

Let’s look to the best cloud computing stocks for potential growth stocks that value-conscious investors may wish to focus on heading into April.

Amazon (AMZN)

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With Amazon Web Services (AWS) gearing up for the next generation of AI, Amazon (NASDAQ:AMZN) stands to be a cloud computing stock that you simply cannot ignore. Yes, it’s one of the more obvious public cloud players that will benefit from the AI boom. However, that doesn’t necessarily mean an investment in AMZN stock can’t do well over time, especially at today’s multiples, which I view as very reasonable.

As Amazon gets its hands on the latest Nvidia (NASDAQ:NVDA) Blackwell line of AI chips, don’t expect momentum in the AWS business to grind to a halt anytime soon. As the economy heats up and enterprises crank up their AI-related spending, AWS will be ready to pick up where it left off before the last few years of mild macro headwinds.

Farther out, the Amazon Bedrock platform, its foundation model Titan, and its own chips (Trainium and Inferium for training and inference purposes, respectively) could become bigger needle movers for AMZN stock.

Salesforce (CRM)

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Salesforce (NYSE:CRM) is another cloud darling that stands to be a big winner in the AI revolution as it continues to advance Einstein for its CRM customers. However, the company isn’t just equipped to thrive in that corner of the enterprise.

As Salesforce embeds next-generation AI technologies into Slack, its workplace communication platform, the firm seems poised to become one of the most influential beneficiaries in the corner of enterprise AI.

Slack AI can save many employees tons of time as various aspects of the workday become automated. From AI-generated thread summaries to the incorporation of AI-driven Slack apps, I think there’s no denying the power of Salesforce’s ecosystem.

Perhaps the biggest wild card, though, is CEO Marc Benioff’s focus on AI ethics and safety. In the AI age, such a focus is key to steering clear of potential regulatory roadblocks in the future as Salesforce’s innovations are built to play by the rules.

Oracle (ORCL)

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Oracle (NASDAQ:ORCL) stock has been subject to big analyst price targets and rating upgrades in recent weeks following its wonderful quarter. The company isn’t merely hopping on the AI bandwagon now that it’s moving; it’s been investing aggressively across many aspects of AI for quite some time now.

Following the firm’s recent quarter, we’ll have to throw Oracle into the conversation when discussing AI-leveraging cloud kings. As AI flies into the cloud, look for the $345 billion giant to “floor it” as it hopes to close the gap with some of its even larger rivals in the enterprise AI scene.

At this pace, it may be a matter of time before Oracle breaks into a league alongside AWS. Of course, only time will tell. Regardless, I’d look for the Fusion Cloud applications suite to act as a potential needle-mover in future quarters.

On the date of publication, Joey Frenette held shares of Amazon and Salesforce. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Joey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market.

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