14 Best Cloud Computing Stocks to Buy Right Now

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2. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 312

Microsoft Corporation (NASDAQ:MSFT) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 9, Melius Research downgraded the company’s stock to “Hold” from “Buy” with a price objective of $430. As per the analyst, the company’s FCF can be impacted because it needs to increase its capex requirements to compete with Google and Amazon, as Microsoft Corporation (NASDAQ:MSFT)’s 365 business is exposed to threats from AI.

Furthermore, the analyst stated that if Microsoft Corporation (NASDAQ:MSFT) doesn’t increase the capex requirements, it would demonstrate either a need for earnings management or an issue with the execution. Also, given the firm’s new FCF estimates, Microsoft Corporation (NASDAQ:MSFT)’s shares are very expensive.

Separately, Microsoft Corporation (NASDAQ:MSFT) released its Q2 2026 results, with Microsoft Cloud revenue crossing $50 billion, thanks to the robust demand for its portfolio of services. The company’s capital expenditures touched $37.5 billion, with around two-thirds earmarked for short-lived assets (mainly GPUs and CPUs). Notably, the company’s capex is allocated throughout Azure, M365 Copilot, GitHub Copilot, and R&D.

Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.

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