In this article, we will look at the 13 Best Cloud Stocks to Buy Now.
On November 20, Kim Posnett, Goldman Sachs’ co-head of investment banking, joined CNBC television to discuss the AI trade and concerns regarding a growing AI bubble. She noted it is still too early to tell if there is an AI bubble or not. Posnett acknowledged the transformative nature and value creation potential of AI, but she also sees some similarities with the dotcom era. However, she emphasized that AI differs from the internet revolution in terms of its scale, pace of growth, and applicability. Posnett noted a recent study by her research team, which examined periods of major tech innovation over the last 175 years. The research found 51 instances of major technology innovations during this time, and out of these instances, 75% innovation periods led to equity price bubbles. She highlighted that the research also looked to trace similarities of the previous bubbles with the current AI revolution and found that, despite the similarities, there isn’t an AI bubble yet.
Posnett further added she believes that the AI trade will continue to move higher; however, the path will be bumpy. She elaborated that this is due to the huge amount of capital that is being allocated, which suggests that the market will see winners and losers along the way. She noted that the key to winning is through effective capital allocation.
Now that we have looked at the commentary of Kim Posnett on the AI bubble, let’s take a look at the 13 Best Cloud Stocks to Buy Now.
Our Methodology
To curate the list of 13 Best Cloud Stocks to Buy Now, we sifted through the top holdings of three ETFs, including the First Trust Cloud Computing ETF, WisdomTree Cloud Computing Fund, and Global X Cloud Computing ETF. Next, we sorted this aggregated list based on market capitalization. After sorting the list, we selected pureplay cloud computing stocks with positive analyst upside potential. Lastly, we ranked the stocks in ascending order by market cap. We have also added the hedge fund sentiment around each stock sourced from Insider Monkey’s Q2 2025 database.
Please note that the data was recorded on November 21, 2025. The market cap data was sourced from the WSJ, and the analyst upside potential was sourced from CNN.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13 Best Cloud Stocks to Buy Now
13. Akamai Technologies, Inc. (NASDAQ:AKAM)
Market Capitalization: $12.57 billion
Analyst Upside Potential: 3.00%
Number of Hedge Fund Holders: 42
Akamai Technologies, Inc. (NASDAQ:AKAM) is one of the Best Cloud Stocks to Buy Now. On November 17, Param Singh from Oppenheimer initiated Akamai Technologies, Inc. (NASDAQ:AKAM) with a Buy rating and a $100 price target. Earlier on November 13, Michael Elias from TD Cowen had reiterated a Hold rating on the stock, but raised the price target from $98 to $104.
The positive outlook on the stock follows the fiscal Q3 2025 earnings beat. The company released results for Q3 2025 on November 6, with revenue growing 4.97% year-over-year to $1.05 billion, surpassing estimates by $10.74 million. Moreover, the EPS of $1.86 also topped estimates by $0.22. The revenue growth was attributed to a 10% increase in Security Service revenue and an 8% increase in Cloud Computing revenue. Notably, the Cloud Infrastructure revenue grew 39% year-over-year to $81 million.
Dr. Tom Leighton, Akamai Technologies, Inc.’s (NASDAQ:AKAM) Chief Executive Officer, highlighted increased interest in the company’s newly launched Akamai Inference Cloud, which is powered by NVIDIA AI infrastructure. Looking ahead, management anticipates Q4 2025 revenue in the range of $1.065 billion to $1.085 billion.
Akamai Technologies Inc. (NASDAQ:AKAM) operates a global content delivery network (CDN) and provides cybersecurity and edge computing services.
12. Nutanix, Inc. (NASDAQ:NTNX)
Market Capitalization: $15.87 billion
Analyst Upside Potential: 51.90%
Number of Hedge Fund Holders: 58
Nutanix, Inc. (NASDAQ:NTNX) is one of the Best Cloud Stocks to Buy Now. Wall Street is bullish on Nutanix, Inc. (NASDAQ:NTNX) ahead of its fiscal Q1 2026 results expected to be announced on November 25. On November 19, Jason Ader from William Blair reiterated a Buy rating on the stock without disclosing any price targets. Earlier, on November 17, Param Singh from Oppenheimer had also maintained a Buy rating on the stock with a $90 price target.
Jason Ader from William Blair noted that he sees the company in a favorable position to capitalize on dissatisfied VMware customers, who are facing pricing changes and unfavorable licensing. Ander sees Nutanix, Inc. (NASDAQ:NTNX) as an alternative for these customers.
In addition to this, the company on November 18 announced expanding Microsoft’s Azure virtual desktop flexibility across its hybrid clouds. Management noted that this integration will allow organizations to run Azure Virtual Desktop on Nutanix AHV hypervisor.
For the upcoming fiscal Q1 2026 results, management anticipates revenue to be in the range of $670 million – $690 million, along with a non-GAAP operating margin in the range of 19.5% to 20.5%.
Nutanix, Inc. (NASDAQ:NTNX) provides cloud software that allows organizations to run applications and manage data seamlessly across multiple cloud environments.
11. Pure Storage, Inc. (NYSE:PSTG)
Market Capitalization: $25.39 billion
Analyst Upside Potential: 22.98%
Number of Hedge Fund Holders: 41
Pure Storage, Inc. (NYSE:PSTG) is one of the Best Cloud Stocks to Buy Now. On November 17, Param Singh from Oppenheimer initiated Pure Storage, Inc. (NYSE:PSTG) with a Buy rating and a $120 price target. On the same day, Samik Chatterjee from J.P. Morgan raised the firm’s price target on the stock from $105 to $110 and reiterated a Buy rating.
The updated positive outlook comes as the company approaches its fiscal Q3 2026 results, expected to be announced on December 2 (post-market). Analyst Singh from Oppenheimer noted that his bullish sentiment is based on the anticipation that the company will benefit from the increased creation of unstructured data for AI and data centers and the need for its storage. Moreover, the company’s bull case is further bolstered by its expanding collaborations with tier 1 and 2 hyperscalers.
Management during the fiscal Q2 2026 earnings call presented its Q3 2026 outlook. Pure Storage, Inc. (NYSE:PSTG) expects revenue in the range of $950 million to $960 million, reflecting 14.3% to 15.5% year-over-year growth. Moreover, the non-GAAP operating income is anticipated in the range of $185 million to $195 million, reflecting 10.6% to 16.6% year-over-year growth.
Pure Storage, Inc. (NYSE:PSTG) provides advanced data storage and management solutions that support various data types and workloads across on-premises, cloud, and hosted environments.
10. Cloudflare, Inc. (NYSE:NET)
Market Capitalization: $67.04 billion
Analyst Upside Potential: 35.85%
Number of Hedge Fund Holders: 59
Cloudflare, Inc. (NYSE:NET) is one of the Best Cloud Stocks to Buy Now. On November 19, Bernstein reiterated a Hold rating on the stock with a $131 price target. A day earlier, on November 18, Tomer Zilberman from Bank of America Securities reiterated a Buy rating on the stock with a $255 price target.
The ratings come after Cloudflare, Inc. (NYSE:NET) was hit by a network outage on November 18 at 11:20 UTC. The outage gained global attention as the company manages and secures around 20% of the web traffic. As a result of the outage, popular sites including Shopify, Indeed, Claude chatbot, Truth Social, and X, among others, were impacted. Management clarified that the root cause of the outage was not due to an attack or malicious activity, but was an automatically generated configuration file that “grew beyond an expected size of entries,” to cause the outage.
While the outage lasted only a few hours and was resolved by 17:06 UTC, the stock slid more than 2% due to the outage.
Analyst Zilberman of BofA noted that although the outage caused reputational challenges, it is a non-structural issue that does not pose any long-term impact. In addition to handling 20% of the web traffic, Cloudflare, Inc. (NYSE:NET) serves 35% of Fortune 100 companies, underscoring the company’s strategic position in the industry.
Cloudflare, Inc. (NYSE:NET) is a connectivity cloud company that provides a comprehensive platform to secure, accelerate, and improve the performance and reliability of websites, applications, and APIs.
9. Snowflake Inc. (NYSE:SNOW)
Market Capitalization: $82.89 billion
Analyst Upside Potential: 10.36%
Number of Hedge Fund Holders: 100
Snowflake Inc. (NYSE:SNOW) is one of the Best Cloud Stocks to Buy Now. Wall Street is bullish on the stock as the company gets close to releasing its fiscal Q3 2026 results, expected on December 3. Recently, on November 20, Derrick Wood from TD Cowen reiterated a Buy rating on Snowflake Inc. (NYSE:SNOW) with a price target of $275. Earlier on November 17, Raimo Lenschow from Barclays had also reiterated a Buy rating on the stock and raised the price target from $255 to $290.
Management expects fiscal Q3 2026 product revenue in the range of $1.125 billion to $1.130 billion, reflecting 25% to 26% year-over-year growth. Moreover, the non-GAAP operating income margin is expected to be around 9%.
Analyst Wood of TD Cowen anticipates the company to deliver solid performance in the upcoming quarters. While he expects the company to exceed growth targets, he notes the performance might not be as exceptional as the previous quarters. The future growth of Snowflake Inc. (NYSE:SNOW) is expected to be driven by its Cloud Data Warehouse (CDW) and Data Engineering segments, which have shown strong demand.
Snowflake Inc. (NYSE:SNOW) is a technology company that specializes in providing a cloud-based platform that provides data cloud and artificial intelligence solutions. The company relies on cloud-native architecture, which consists of three integrated layers, including compute, storage, and cloud services.
8. Arista Networks Inc (NYSE:ANET)
Market Capitalization: $150.60 billion
Analyst Upside Potential: 42.99%
Number of Hedge Fund Holders: 81
Arista Networks Inc. (NYSE:ANET) is one of the Best Cloud Stocks to Buy Now. Arista Networks Inc. (NYSE:ANET) has been down more than 23.5% since its fiscal Q3 2025 results were announced on November 4. The cautious investor sentiment comes despite the earnings beat.
During the quarter, revenue grew 27.46% year-over-year to $2.31 billion, surpassing expectations by $41.76 million. Moreover, the EPS of $0.75 also topped estimates by $0.04. Management attributed revenue growth to a robust performance in the product segment. The share price fell despite the strong performance as the company signaled modest growth for fiscal Q4 2025. Management anticipates fourth quarter revenue in the range of $2.3 billion to $2.4 billion.
Wall Street has had a mixed opinion on the stock since its release. On November 10, Mizuho Securities raised the price target on Arista Networks Inc (NYSE:ANET) from $172 to $176 and reiterated a Buy rating. However, on the same day, Hans Engel from Erste Group downgraded the stock from Buy to Hold, without disclosing any price targets.
Analyst Engel said in a research note that the company is working on building a cross-vendor ecosystem that will integrate AI networks with computing infrastructure. Engel noted that this creates high revenue growth opportunities in the medium term, however, at a slowing pace. Moreover, he also suggests that the operating margins of the company are expected to dip slightly next year.
Arista Networks Inc. (NYSE:ANET) is a technology company that provides data-driven networking solutions for large data centers, campus environments, and cloud computing.
7. ServiceNow, Inc. (NYSE:NOW)
Market Capitalization: $166.50 billion
Analyst Upside Potential: 43.67%
Number of Hedge Fund Holders: 106
ServiceNow, Inc. (NYSE:NOW) is one of the Best Cloud Stocks to Buy Now. The stock has been down more than 10.7% since the release of its fiscal Q3 2025 results on October 29. However, Wall Street maintains a positive outlook on the stock.
On October 31, Saiyi He from CMB International reiterated a Buy rating on the stock with a $1,180 price target. A day earlier, Matthew Hedberg from RBC Capital had also maintained a Buy rating on ServiceNow, Inc. (NYSE:NOW) with a $1,200 price target.
The positive outlook is driven by a robust fiscal third quarter and raised full-year guidance. During the third quarter, revenue grew 21.85% year-over-year to $3.41 billion, surpassing estimates by $49.93 million. Moreover, the EPS of $4.82 also came in ahead of the expectations by $0.55. The growth was driven by robust demand for AI services and a 30% increase in US federal contracts.
Management raised its full-year guidance based on the increased momentum. Full-year subscription revenue is now expected to be in the range of $12.835 billion – $12.845 billion, up from the previous range of $12.775 billion – $12.795 billion.
In other news, on November 18, ServiceNow, Inc. (NYSE:NOW) announced new upcoming integrations with Microsoft, which will deliver enhanced AI orchestration and governance capability. Under the collaboration, the companies will unite their intelligence and clouds to connect copilots, agents, and data seamlessly across Microsoft 365 and the ServiceNow AI Platform.
ServiceNow, Inc. (NYSE:NOW) provides a cloud-based AI platform that helps businesses automate and digitize workflows across various departments.
6. Salesforce, Inc. (NYSE:CRM)
Market Capitalization: $214.55 billion
Analyst Upside Potential: 46.43%
Number of Hedge Fund Holders: 121
Salesforce, Inc. (NYSE:CRM) is one of the Best Cloud Stocks to Buy Now. On November 21, Raimo Lenschow from Barclays reiterated a Buy rating on Salesforce, Inc. (NYSE:CRM) with a price target of $316. Earlier on November 20, Derrick Wood from TD Cowen also reiterated a Buy rating on the stock, but lowered the price target from $335 to $305.
Analyst Wood highlighted that despite the company topping estimates during its fiscal Q2 2026, the results indicate mixed signals for the second half of 2026. The enterprise checks show potential pressure in renewal business; however, Wood sees potential for improvement as the company is restructuring its price and packaging strategies.
Salesforce, Inc. (NYSE:CRM) is set to release its fiscal Q3 2026 results on December 3. Management anticipates revenue for the quarter to be between $10.24 billion and $10.29 billion, reflecting 8% to 9% year-over-year growth.
In other news, the company on November 18 completed the acquisition of Informatica, which is an AI-powered cloud data management company. Management noted that the acquisition will enhance the company’s platform by achieving data clarity with Data 360, delivering complete integration with MuleSoft, and elevating the AgentForce 360 Platform with critical data foundations.
Salesforce, Inc. (NYSE:CRM) provides customer relationship management (CRM) technology that integrates AI to help businesses improve sales, service, marketing, and commerce.
5. International Business Machines Corporation (NYSE:IBM)
Market Capitalization: $271.45 billion
Analyst Upside Potential: 3.31%
Number of Hedge Fund Holders: 63
International Business Machines Corporation (NYSE:IBM) is one of the Best Cloud Stocks to Buy Now. On November 21, Param Singh from Oppenheimer initiated International Business Machines Corporation (NYSE:IBM) with a Buy rating and a $360 price target. Earlier on November 19, Amit Daryanani from Evercore ISI had also reiterated a Buy rating on the stock with a $315 price target.
Singh from Oppenheimer noted that his bullish sentiment is based on the prediction that the company’s software portfolio can achieve double-digit revenue growth driven by robust automation and growth in Red Hat. Moreover, the analyst also sees the consulting segment sustaining its low single-digit growth along with a recovering application development and management.
In addition to this improved positive outlook, the company is also making progress with quantum computers. On November 20, Reuters reported that International Business Machines Corporation (NYSE:IBM) and Cisco Systems plan to link quantum computers over long distances. The companies aim to prove that this concept is workable by the end of 2030.
Earlier, on November 12, the company had unveiled Loon, its experimental quantum computing chip. Management believes the chip is a major milestone towards making quantum computers useful by 2029.
International Business Machines Corporation (NYSE:IBM) is a global technology leader providing software, consulting, and infrastructure solutions, with a strategic emphasis on hybrid cloud and artificial intelligence.
4. Oracle Corporation (NYSE:ORCL)
Market Capitalization: $600.63 billion
Analyst Upside Potential: 72.92%
Number of Hedge Fund Holders: 124
Oracle Corporation (NYSE:ORCL) is one of the Best Cloud Stocks to Buy Now. Oracle Corporation (NYSE:ORCL) has fallen more than 39% over the past 2 months due the concerns of a growing AI bubble. However, despite the rising concerns, on November 18, Robert Oliver from Robert W. Braid reiterated a Buy rating on the stock, but lowered the price target from $365 to $315. Earlier on November 17, Brent Thill from Jefferies had also reiterated a Buy rating on the stock with a $400 price target.
While the stock price started to fall heavily after the company announced on September 22 announced replacement of longtime CEO Safra Catz with Clay Magouyrk and Mike Sicilia, the AI valuation concerns have been lingering for years. Oracle Corporation (NYSE:ORCL) came under the spotlight after it raised $18 billion in debt last month, taking its total debt to over $100 billion.
As a result, traders have recently been hedging the company’s credit-default swaps. On November 20, Bloomberg reported that the price of Oracle Corporation’s (NYSE:ORCL) 5-year CDS has tripled and now costs around $111,000 per year to protect $10 million of the company’s debt from default over five years.
In addition, according to a November 13 report by CNBC, analyst Jackson Ader from KeyBanc Capital Markets, who has a Buy rating on Oracle Corporation (NYSE:ORCL) with a $350 price target, noted “AI sentiment is waning.” He also added, “We struggle to see an avenue for ORCL’s credit trajectory to improve.”
Oracle Corporation (NYSE:ORCL) provides cloud-based suites of applications and secure, automated infrastructure through its Oracle Cloud Platform.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Market Capitalization: $2.32 billion
Analyst Upside Potential: 33.55%
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the Best Cloud Stocks to Buy Now. On November 21, Justin Post from the Bank of America Securities reiterated a Buy rating on the stock with a $303 price target. Earlier on November 19, Mark Shmulik from Bernstein had also reiterated a Buy rating on the stock with a $300 price target.
The positive outlook on the stock follows the company’s recent partnership with HUMAIN, announced on November 19. Under this partnership, Amazon.com, Inc. (NASDAQ:AMZN) will work with HUMAIN, which is a Public Investment Fund company, to deploy and manage 150,000 AI accelerators in a data center facility called “AI Zone” in Riyadh, Saudi Arabia.
The AI Zone would be a first-of-its-kind facility in Saudi Arabia, which will support NVIDIA’s latest GB300 AI infrastructure and Amazon.com, Inc.’s (NASDAQ:AMZN) Trainium AI chips. The release highlighted that the infrastructure at this facility will support a range of compute-intensive workloads, including model training and running inference of AI applications.
In addition, HUMAIN will also join the company’s AWS Solution Provider Program, allowing customers to have access to AWS services. This collaboration builds upon the earlier announcement of a strategic collaboration between the two companies announced in May 2025, where the companies shared their joint investment plan of investing more than $5 billion in AI infrastructure in Saudi Arabia.
Amazon.com, Inc. (NASDAQ:AMZN) is a global retailer offering a wide range of products through online and physical stores, focusing on selection, price, and convenience.
2. Alphabet Inc. (NASDAQ:GOOGL)
Market Capitalization: $3.50 billion
Analyst Upside Potential: 14.01%
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Cloud Stocks to Buy Now. On November 21, Justin Post from Bank of America Securities reiterated a Buy rating on the stock with a $335 price target. In addition, on November 19, Mark Mahaney from Evercore ISI also reiterated a Buy rating on the stock with a $325 price target.
A day earlier, on November 20, CNBC reported that Alphabet Inc. (NASDAQ:GOOGL) launched its latest image-generating and editing tool called NanoBanana. According to the report, the new tool is built on the newly launched Gemini 3 Pro, which led the company’s stock 5% higher on November 18 with its release. Vice President of Google Labs and Gemini, Josh Woodward, noted that the tool’s potential extends beyond the original interpretation, which was launched in August. The tool is now available in the Gemini App.
In addition, Wall Street analysts have expressed positive sentiment on the latest Gemini 3 model. For instance, Post from BofA believes the new model can potentially close the performance gap with other leading models in the market. Moreover, on November 17, CNBC reported D.A. Davidson’s analyst called Gemini 3 a “genuinely strong model,” based on performance tests against AI benchmarks.
Alphabet Inc. (NASDAQ:GOOGL) is a holding company with major segments including Google Services, Google Cloud, and Other Bets.
1. Microsoft Corporation (NASDAQ:MSFT)
Market Capitalization: $3.56 billion
Analyst Upside Potential: 32.31%
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Cloud Stocks to Buy Now. Microsoft Corporation (NASDAQ:MSFT) has declined more than 12.8% since its fiscal Q1 2026 results. However, Wall Street maintains a positive outlook on the stock. On November 20, Gregg Moskowitz from Mizuho Securities reiterated a Buy rating on the stock with a $640 price target. On the same day, Karl Keirstead from UBS also maintained a Buy rating on the stock with a $650 price target.
Analyst Keirstead sees strong revenue growth prospects for Azure in 2026, driven by new AI capacity. He also highlighted that the stock currently trades at a forward multiple of 42 times free cash flow and 25 times non-GAAP earnings per share. The price target of $650 is based on the anticipation that Microsoft Corporation’s (NASDAQ:MSFT) 2027 free cash flow multiple will be 50x. Keirstead notes that this valuation will appear reasonable if Azure sustains growth in the high 30% to low 40%, along with non-GAAP EPS growth of 20% to 25%.
In other news, on November 18, Microsoft Corporation (NASDAQ:MSFT) announced a new strategic partnership with NVIDIA and Anthropic aimed at scaling the Claude AI model on Microsoft Azure. Management noted that Anthropic has agreed to purchase $30 billion worth of Azure compute capacity with the aim of contracting additional one gigawatt capacity. Moreover, Microsoft Corporation (NASDAQ:MSFT) also aimed to invest more than $5 billion in Anthropic as part of the partnership.
Microsoft Corporation (NASDAQ:MSFT) is a leading technology company known for a wide range of devices, software, and services. Some of the core offerings by the company include productivity software, including Microsoft Office and Azure, the Windows operating system, and gaming devices.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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