In this article, we will take a look at the 12 Best Cloud Stocks to Buy According to Wall Street Analysts.
As a result of the impending mass migration to the cloud, cloud computing-related offerings are now the fastest-growing segment of the IT market. Although cloud computing grew significantly in the 2010s, the next-generation IT industry is still in its infancy. Recently, companies all over the world have been moving their operations to the cloud, where they store digital data and services in remote data centers and access them online.
According to a report from MarketsandMarkets, the global cloud market is expected to grow from $1,091.4 billion in 2024 to $1,256.8 billion by 2025 at a 15.1% year-over-year increase. However, there are obstacles, particularly for small and medium-sized enterprises (SMEs), due to the rising costs of cloud services and possible security threats.
As cloud cybersecurity threats increase, security and compliance will take precedence. Industry-specific cloud solutions will become more and more in demand, with retail predicted to grow at the fastest rate in the upcoming years. As a result, it is expected that spending on IT services will increase from $1.59 trillion in 2024 to $1.74 trillion in 2025.
With that in mind, we will now take a look at the best cloud stocks to buy according to Wall Street analysts.
Our Methodology
For this list, we noted down cloud stocks based on analyst estimates as of July 10. We ranked the top 12 stocks in ascending order based on their average share price upside potential. Additionally, we included hedge fund sentiment for each stock, as of Q1 2025, to offer readers deeper insights.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Snowflake Inc. (NYSE:SNOW)
Analyst Upside: 2.85%
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) ranks among the best cloud stocks to buy according to Wall Street analysts. On June 12, UBS reaffirmed its Buy rating on Snowflake Inc. (NYSE:SNOW) with a $265 price target. The rating affirmation comes after UBS analysts attended the Databricks conference in San Francisco, where they spoke with 15 clients and partners and took part in the Investor Day.
The firm pointed out that although Snowflake Inc. (NYSE:SNOW) and Databricks are directly competitive, the conference did not spark new concerns about Snowflake’s place in the market. According to the firm’s perspective, industry-wide investments in the data layer remain strong. Despite their rivalry, both companies stand to gain from this continuing investment trend.
According to UBS, the overall mood during the Databricks conference was in favor of the idea that significant investments in data infrastructure would act as a tailwind for Snowflake Inc. (NYSE:SNOW).
Snowflake Inc. (NYSE:SNOW) is an American cloud-based data storage company that operates a platform built on Amazon Web Services, Microsoft Azure, and Google Cloud. It also provides Snowflake Cortex with a set of AI capabilities that employ large language models to analyze unstructured data.
11. Cisco Systems, Inc. (NASDAQ:CSCO)
Analyst Upside: 3.62%
Number of Hedge Fund Holders: 82
Cisco Systems Inc. (NASDAQ:CSCO) ranks among the best cloud stocks to buy according to Wall Street analysts. On June 25, KeyBanc began coverage of Cisco Systems Inc. (NASDAQ:CSCO) with a price target of $77 and an Overweight rating. The firm attributed the optimistic outlook in large part to Cisco’s strategic shift toward a subscription-based revenue model in its networking and security divisions.
According to KeyBanc, this change would improve the predictability and stability of the model, which should help valuation multiples. In contrast to five years ago, Cisco Systems Inc. (NASDAQ:CSCO) has undergone a significant change. KeyBanc states that the company’s ongoing mix shift toward subscriptions has resulted in more annual recurring revenue, a more stable revenue growth profile, and stronger gross margins excluding tariffs.
Strong industry trends that are bolstering Cisco’s expansion were also noted by the firm, such as enterprise cloud migrations and the momentum of AI, which should result in robust revenue growth.
Cisco Systems Inc. (NASDAQ:CSCO) is a well-known technology company that offers networking and IT solutions, leveraging artificial intelligence to increase network performance, security, and automation.
10. Veeva Systems Inc. (NYSE:VEEV)
Analyst Upside: 4.57%
Number of Hedge Fund Holders: 55
Veeva Systems Inc. (NYSE:VEEV) ranks among the best cloud stocks to buy according to Wall Street analysts. Veeva Systems Inc. (NYSE:VEEV) appears to be expanding its network this year in the form of high-impact partnerships. In June, the company declared that pharmaceutical giant Astellas would adopt Veeva Vault CRM as the industry standard for commercial operations across the globe, including a customized version for China. The goal of the collaboration is to employ Veeva’s data and technological solutions to improve Astellas’ commercial agility and execution capabilities.
Veeva’s Vault CRM is designed to meet the diverse legal and business needs of different countries. The software is a component of the Vault CRM Suite, which attempts to improve commercial performance by facilitating communication between the medical, marketing, and sales teams.
The same month, Veeva Systems Inc. (NYSE:VEEV) launched its Clinical Platform across more than 200 oncology research sites in collaboration with the Sarah Cannon Research Institute, a significant endorsement of its technology for expediting cancer trials.
Veeva Systems Inc. (NYSE:VEEV) is a healthcare software services provider that aids organizations in managing drug development, customer engagement, and a variety of other operations. The company added a new cloud platform in September 2023 intended to assist pharmaceutical manufacturers in managing their supply chains and production.
9. ServiceNow, Inc. (NYSE:NOW)
Analyst Upside: 5.38%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) ranks among the best cloud stocks to buy according to Wall Street analysts. On July 2, Morgan Stanley analyst Keith Weiss raised the price target for ServiceNow, Inc. (NYSE:NOW) from $950 to $1,040 while maintaining a Hold rating on the company’s shares. With the extension beyond core IT workflows into areas like CRM and Industry workflows, the analyst claims that the new Total Addressable Market (TAM) analysis indicates a large market opportunity.
However, despite this potential, the company’s high enterprise value to free cash flow ratio suggests that its current valuation has already factored in these growth prospects.
The analyst states that a more optimistic outlook can’t be justified by currency fluctuations alone, even though they have served as a financial tailwind that has raised subscription revenue expectations.
ServiceNow, Inc. (NYSE:NOW) is a leading provider of cloud-based software solutions that enable corporations to streamline their digital workflows. The company operates the Now platform, a cloud-based platform with integrated AI that aids governments and multinational companies in digitizing their processes.
8. Microsoft Corporation (NASDAQ:MSFT)
Analyst Upside: 5.69%
Number of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) ranks among the best cloud stocks to buy according to Wall Street analysts. The Information reported on July 2 that Microsoft Corporation (NASDAQ:MSFT) is altering its strategy for internally designed AI server chips, choosing instead to focus on less ambitious designs through 2028. This update follows Microsoft’s previous decision to postpone the delivery of its latest-generation AI chip, the Maia 200, from 2025 to 2026.
Microsoft Corporation (NASDAQ:MSFT) intends to streamline the development process by reducing the scope of some designs and prolonging the schedule for other AI chips that are currently under development. With three years to go before they are released, the company expects that these processors remain competitive with NVIDIA’s AI chips.
Microsoft Corporation (NASDAQ:MSFT) is a leading technology company known for its core software products, which include the Windows OS, Microsoft 365 suite, and Edge browser. Its product portfolio includes corporate software, software development tools, video games, gaming gear, and cloud services.
7. Intuit Inc. (NASDAQ:INTU)
Analyst Upside: 5.74%
Number of Hedge Fund Holders: 87
Intuit Inc. (NASDAQ:INTU) ranks among the best cloud stocks to buy according to Wall Street analysts. On July 2, Mizuho reaffirmed its $875 price target and Outperform rating for Intuit Inc. (NASDAQ:INTU) in response to reports that the company intends to lay off about 600 workers in California.
If completely implemented, the cut would amount to roughly 3-4% of Intuit’s total workforce and might result in an additional 60–70 basis points of operating margin increase for Mizuho’s fiscal year 2026 estimate.
According to Mizuho, the market still undervalues AI-driven margin expansion in software companies, and the layoffs are a result of Intuit’s internal use of AI, which appears to have boosted effectiveness and productivity. Similar to fiscal year 2025, the firm expects that Intuit Inc. (NASDAQ:INTU) will release its first fiscal year 2026 forecast in August. This guidance is expected to include a conservative estimate of an operating margin raise of about 60 basis points.
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform that enables both individuals and organizations to achieve their financial goals. Its products include Mailchimp for email marketing, QuickBooks for company accounting, Credit Karma for financial management, and TurboTax for tax preparation.
6. Amazon.com, Inc. (NASDAQ:AMZN)
Analyst Upside: 12.42%
Number of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) ranks among the best cloud stocks to buy according to Wall Street analysts. Jefferies kept its Buy rating on Amazon.com, Inc. (NASDAQ:AMZN) while raising its price target for the e-commerce behemoth from $250 to $255 on July 1.
According to the firm’s analysis, Amazon.com, Inc. (NASDAQ:AMZN) customers remain resilient in the face of inflation worries, with 47% of respondents spending the same amount on the platform over the previous three months and 15% spending even more. Of those surveyed, 31% said they were spending less on Amazon, while only 3% said they had completely stopped.
The company’s July Prime Day event, which has been extended from the usual two-day format to four days (July 8–11), is expected to increase the number of Prime subscriptions, especially among students and young adults, thanks to prolonged free trial offerings.
Amazon.com, Inc. (NASDAQ:AMZN), is an American multinational technology company that offers a wide range of commercial interests that include digital streaming, online advertising, e-commerce, cloud computing through Amazon Web Services (AWS), and artificial intelligence.
5. Alphabet Inc. (NASDAQ:GOOGL)
Analyst Upside: 15.40%
Number of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) ranks among the best cloud stocks to buy according to Wall Street analysts. On July 2, DA Davidson reaffirmed its Neutral rating and $160 price target for Alphabet Inc. (NASDAQ:GOOGL), indicating that a potential company split might provide investors with substantial value.
According to the firm, “the only way forward for Alphabet is a complete breakup” that would enable investors to hold only the portions of the company that appeal to them, such as rivals to Netflix, AWS/Azure, NVIDIA, and OpenAI.
DA Davidson also emphasized Google Cloud in its analysis, suggesting that this market area alone might have a standalone value of almost $56 per share. The firm stated that it would view Alphabet Inc. (NASDAQ:GOOGL) as “the top mega cap pick” if the company went ahead with a comprehensive division of its many business groups, even if it currently holds a Neutral position on the stock.
Alphabet Inc. (NASDAQ:GOOGL) is a leading tech giant with a diverse portfolio, offering products such as Google Ads, Google Chrome, Google Cloud, Search, and YouTube, holding a dominant position in each of these markets.
4. The Trade Desk Inc. (NASDAQ:TTD)
Analyst Upside: 18.37%
Number of Hedge Fund Holders: 61
The Trade Desk, Inc. (NASDAQ:TTD) ranks among the best cloud stocks to buy according to Wall Street analysts. On June 17, BMO Capital reaffirmed its $115 price target and outperform rating on The Trade Desk, Inc. (NASDAQ:TTD). The update coincides with reports that Amazon and Roku had formed an exclusive partnership.
Through the collaboration, advertisers may leverage Amazon DSP to expand their connected TV (CTV) reach to almost 80 million CTV households in the United States. According to BMO, though there won’t be any changes to the direct relationship between Roku and The Trade Desk, Inc. (NASDAQ:TTD), investors may wonder how Roku’s inventory share might move from TTD to other demand-side platform channels.
The event was described by BMO as “potentially somewhat of a headline overhang for TTD,” though it reflects an expected move by Amazon to assist in replenishing Prime Video inventories.
The Trade Desk, Inc. (NASDAQ:TTD), a leading supplier of advertising technology, specializes in offering advertising solutions to digital marketers. Advertisers may plan, manage, and optimize their digital ad campaigns across various platforms and channels using its self-service, transparent software and cloud-based platform.
3. NICE Ltd. (NASDAQ:NICE)
Analyst Upside: 20.86%
Number of Hedge Fund Holders: 23
NICE Ltd. (NASDAQ:NICE) ranks among the best cloud stocks to buy according to Wall Street analysts. Piper Sandler maintained its rating for NICE Ltd. (NASDAQ:NICE) at Neutral while increasing its price target to $182 from $153 on June 13. According to the firm, NICE recently secured two contracts worth over $100 million in annual recurring revenue (ARR), among other significant enterprise deals. These major agreements, expected to affect the company’s financial performance mainly in 2026–2027, may also cause cloud revenue to pick up speed again.
NICE Ltd. (NASDAQ:NICE) has gained significant business clients in recent years, despite the enterprise transition cycle from on-premise to cloud contact center as a service (CCaaS) moving more slowly than first expected, according to Piper Sandler.
NICE Ltd. (NASDAQ:NICE) offers cloud platforms for AI-driven business solutions. It incorporates AI and ML into its main products, which include contact centers, staffing solutions, and customer experience.
2. Adobe Inc. (NASDAQ:ADBE)
Analyst Upside: 26.85%
Number of Hedge Fund Holders: 111
Adobe Inc. (NASDAQ:ADBE) ranks among the best cloud stocks to buy according to Wall Street analysts. In response to Figma’s S-1 filing on July 1, DA Davidson has reaffirmed its $500 price target and Buy rating for Adobe Inc. (NASDAQ:ADBE).
According to the research firm, Figma’s financial profile is solid, with $821 million in revenue over the last 12 months, which represents 48% year-over-year growth as of the first quarter of 2025. The firm also reported 18% non-GAAP operating margins. Adobe Inc. (NASDAQ:ADBE), by contrast, makes almost $22.6 billion a year and maintains impressive gross profit margins of 89.25%.
Figma and Adobe Inc. (NASDAQ:ADBE) are both in a strong position to profit from this industry trend, according to DA Davidson, as artificial intelligence has sped up the production of digital products.
Adobe Inc. (NASDAQ:ADBE) is a world leader in software creation, known for its cutting-edge digital media solutions. Its major products, including Photoshop and Acrobat are essential tools for creative sectors and organizations across the globe. It also provides a uniform cloud-based document services platform called the Document Cloud.
1. Salesforce, Inc. (NYSE:CRM)
Analyst Upside: 26.92%
Number of Hedge Fund Holders: 140
Salesforce, Inc. (NYSE:CRM) ranks among the best cloud stocks to buy according to Wall Street analysts. KeyBanc reaffirmed its Overweight rating on Salesforce, Inc. (NYSE:CRM) on July 2, citing a $440 price target. The firm’s analysis focuses on the company’s potential acquisition of Informatica, including both arguments in favor of and against the strategic move.
KeyBanc points out that a significant adoption hurdle in Agentforce that relates to data availability and cleanliness may be resolved by the acquisition. By combining data mobility capabilities (ETL) with master data management solutions, Informatica may be able to address enterprise data issues that are preventing Salesforce’s AI efforts. According to KeyBanc, these skills are “rare in the data space.”
However, the firm expressed concern that the acquisition schedule may potentially extend the current data bottleneck issues for “another year, maybe more.”
Salesforce, Inc. (NYSE:CRM) is a cloud-based software company focused on customer relationship management. The company offers custom software and solutions for various applications, such as analytics, marketing automation, and sales.
While we acknowledge the potential of CRM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about this cheapest AI stock.
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