13 Best Cloud Computing Stocks to Invest in Now

Page 1 of 13

In this article, we will discuss the 13 Best Cloud Computing Stocks to Invest in Now.

McKinsey believes that the rapid evolution of AI continues to reshape the entire cloud infrastructure landscape, ranging from semiconductors to data center design. As enterprises deploy AI-powered workloads, key challenges arise related to power constraints and shifting supply chains. Notably, increased demand for AI computing has prompted deeper collaboration among chip developers, cloud providers, and infrastructure manufacturers.

Key Trends in Broader Cloud Computing Market

McKinsey noted that hyperscalers’ advances in hardware accessibility, along with investments from big organizations, allowed smaller players to enter the cloud market and grow. The availability of advanced computing chips, including GPUs and specialized AI accelerators, empowered such emerging providers to innovate in niche areas.

With the help of cutting-edge hardware, new entrants can provide differentiated services like AI-optimized cloud platforms or edge computing solutions catering to specific customer needs. This transition has been creating new market opportunities and fostering competition, fueling innovation throughout the cloud industry. Precedence Research highlighted that the global cloud computing market size was valued at US$753.11 billion in 2024 and is expected to reach ~US$5,150.92 billion by 2034.

Amidst such trends, we will now have a look at the 13 Best Cloud Computing Stocks to Invest in Now.

13 Best Cloud Computing Stocks to Invest in Now

A close up view of a laptop computer, the cloud computing platform displayed on the screen.

Our Methodology

To list the 13 Best Cloud Computing Stocks to Invest in Now, we sifted through several online rankings to shortlist the stocks catering to the broader cloud computing space. Finally, we selected the ones popular among hedge funds. We also mentioned hedge fund sentiments around each stock, as of Q1 2025. The stocks are arranged in ascending order of their hedge fund sentiments.

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).

13 Best Cloud Computing Stocks to Invest in Now

13. Rackspace Technology, Inc. (NASDAQ:RXT)

Number of Hedge Fund Holders: 13

Rackspace Technology, Inc. (NASDAQ:RXT) is one of the Best Cloud Computing Stocks to Invest in Now. On August 5, the company announced the launch of the Rackspace Cloud Management Platform, which includes next-gen upgrades to the Rackspace Managed Cloud (RMC) offering. The platform offers customers a single framework that tends to leverage best-in-class AI-enabled tools, bolstering companies to streamline workload operations, ramp up digital transformation, and more efficiently manage modern hybrid and multicloud environments.

Rackspace Technology, Inc. (NASDAQ:RXT) stated that go‑to‑market execution throughout both business units was strong in Q2 2025, demonstrating progress in its turnaround. Bookings saw an increase of 16%, with operating profit increasing 34% YoY. Also, Rackspace Technology, Inc. (NASDAQ:RXT) delivered positive operating cash flow. In Q2 2025, its cash flow from operating activities came in at $8 million.

For Q3 2025, Rackspace Technology, Inc. (NASDAQ:RXT) expects total revenue in the range of $660 million – $674 million, with private cloud revenue of between $246 million – $254 million and public cloud revenue of $414 million – $420 million.

Rackspace Technology, Inc. (NASDAQ:RXT) operates as a cloud and AI solutions company.

Page 1 of 13