In this article, we will discuss the 14 Best Cloud Computing Stocks to Buy Right Now.
According to McKinsey, over 95% of enterprise organizations possess a cloud footprint, while the portion of enterprise workloads in public cloud has gone up from 32% in 2018 to 52% in 2025.
The firm’s 2024 report noted that cloud was one of the 18 future arenas of competition, which has the potential to bring in $29 trillion – $48 trillion in revenues by 2040. While public cloud consumption alone rose from ~$90 billion in 2019 to touch $335 billion in 2024, the industry can garner $1.6 trillion to $3.4 trillion in revenue by 2040.
Elsewhere, Deloitte noted that generative AI continues to increase the IT budgets for several companies. There could be some compression in margins for software companies in 2026 as a result of uncertain AI workloads economics, and the potential for higher infrastructure costs.
For companies having their own cloud infrastructure, there can be changes in their plans and delays in the development of data centers.
Amidst such trends, we will now have a look at the 14 Best Cloud Computing Stocks to Buy Right Now.
Our Methodology
To list the 14 Best Cloud Computing Stocks to Buy Right Now, we sifted through online rankings and shortlisted the stocks catering to the broader cloud computing sector. Next, we selected the ones popular among hedge funds, as of Q3 2025. Finally, the stocks are arranged in an 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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14 Best Cloud Computing Stocks to Buy Right Now
14. DigitalOcean Holdings, Inc. (NYSE:DOCN)
Number of Hedge Fund Holders: 30
DigitalOcean Holdings, Inc. (NYSE:DOCN) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 5, Cantor Fitzgerald upgraded the company’s stock to “Overweight” from “Neutral,” increasing the price objective to $68 from $47. As per the analyst, this reflects ~6x the CY27 updated revenue targets.
The analyst opines that DigitalOcean Holdings, Inc. (NYSE:DOCN) will continue to scale its business, which includes winning large customers. This fact is backed by the company’s recent win of Character.ai. As the product expands, the analyst believes that there will be more traction with the GPU-led platform-as-a-service.
Furthermore, DigitalOcean Holdings, Inc. (NYSE:DOCN)’s digital-native-focused as well as developer-first approach, which focuses on offering hyperscale services to the overall mass market, seems well-placed to scale. This can drive profitable growth and additional re-rating of the company’s stock.
On January 27, BofA analyst Wamsi Mohan lifted its price objective on DigitalOcean Holdings, Inc. (NYSE:DOCN)’s stock to $72 from $60, while keeping a “Buy” rating. The firm raised its multiple to demonstrate the early adoption of agentic AI and use cases from the broadening of agentic AI. BofA believes that the company’s shares continue to trade higher, with agentic AI assistants, mainly Clawdbot, seeing traction throughout the developer communities.
DigitalOcean Holdings, Inc. (NYSE:DOCN) operates a cloud computing platform and offers on-demand infrastructure and platform tools.
13. Braze, Inc. (NASDAQ:BRZE)
Number of Hedge Fund Holders: 34
Braze, Inc. (NASDAQ:BRZE) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 9, Stifel reduced its price objective on the company’s stock to $40 from $45, while keeping a “Buy” rating, as reported by The Fly.
As per the firm, the recent announcements coming from AI model providers as well as AI-native companies resulted in negative sentiments for the company. There are questions about the sustainability of Braze, Inc. (NASDAQ:BRZE)’s growth trends over the medium to long term.
That being said, the firm believes that Braze, Inc. (NASDAQ:BRZE) possesses an overlooked moat and is a potential AI winner compared to other SaaS providers, which are vulnerable to disruption.
Meanwhile, Piper Sandler reduced its price objective on Braze, Inc. (NASDAQ:BRZE)’s stock to $30 from $50, while keeping an “Overweight” rating. The firm believes there will be pessimism around the software space, and investors should emphasize consumption, hyperscaler, and vertical sub-sectors.
Braze, Inc. (NASDAQ:BRZE) operates a customer engagement platform. Notably, Braze Cloud Data Ingestion (CDI) allows brands in harnessing their customer data.
12. Twilio Inc. (NYSE:TWLO)
Number of Hedge Fund Holders: 55
Twilio Inc. (NYSE:TWLO) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 13, Morgan Stanley reduced its price objective on the company’s stock to $153 from $169, while keeping an “Overweight” rating, as reported by The Fly. The analyst highlighted that Q4 2025 surpassed the organic revenue guidance by ~350 bps. This was supported by continued broad-based momentum throughout Twilio Inc. (NYSE:TWLO)’s business.
Furthermore, the earnings report can be seen as further validation of Twilio Inc. (NYSE:TWLO)’s capability to fuel double-digit organic revenue growth, while, at the same time, maintaining discipline on operating expenses.
In a separate release, on February 13, Piper Sandler analyst James Fish reduced the target price on Twilio Inc. (NYSE:TWLO)’s stock to $130 from $148, while keeping a “Neutral” rating. Notably, the company’s quarterly performance and guidance were largely in line with expectations. On a positive note, Voice & Messaging demonstrated strong growth.
Twilio Inc. (NYSE:TWLO) provides customer engagement platform solutions. Twilio has been built on flexible and scalable cloud infrastructure, combining communications and customer data platforms into one.
11. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 63
Cloudflare, Inc. (NYSE:NET) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 12, Citi analyst Fatima Boolani lifted the firm’s price objective on the company’s stock to $265 from $260, while keeping a “Buy” rating. The firm views Cloudflare, Inc. (NYSE:NET)’s Q4 2025 report as strong.
In a separate release, on February 11, Scotiabank reduced its price objective on the company’s stock to $225 from $255, keeping a “Sector Perform” rating, as reported by The Fly. As per the analyst, Cloudflare, Inc. (NYSE:NET)’s Q4 2025 revenue growth was strong, and the analyst is also optimistic about FY 2026 revenue growth guidance. As per the firm, Cloudflare, Inc. (NYSE:NET) remains well-placed to capitalize on elevated demand levels for AI infrastructure.
In a separate update, on February 10, Cloudflare, Inc. (NYSE:NET) released Q4 2025 and FY 2025 results, with quarterly revenue of $614.5 million, reflecting 33.6% YoY growth, as 4,298 customers now pay over $100,000 per year. This was up 23% YoY. For FY 2026, the company expects total revenue of between $2,785.0 million – $2,795.0 million.
Cloudflare, Inc. (NYSE:NET) offers an integrated cloud-based security solution to a combination of platforms, such as public cloud, private cloud, on-premises, SaaS applications, etc.
10. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 72
Datadog, Inc. (NASDAQ:DDOG) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 6, Cantor Fitzgerald reduced its price target on the company’s stock to $150 from $220, while keeping an “Overweight” rating, as reported by The Fly. As per the analyst, the observability sector demonstrated strong performance, with results ranging from in-line to ahead-of-plan.
After the recent M&A, the security-related sales cycles have strengthened. Also, the ongoing platform consolidation is benefiting the pure-play companies.
Meanwhile, Scotiabank reduced its price target on Datadog, Inc. (NASDAQ:DDOG)’s stock to $160 from $180, while keeping an “Outperform” rating, as reported by The Fly. As per the analyst, the firm believes that Datadog, Inc. (NASDAQ:DDOG) remains the gold standard for cloud-native observability. Also, the firm appreciates the company’s accelerating adoption because of AI.
In a separate release, Baird reduced its price target on the company’s stock to $180 from $220, while keeping an “Outperform” rating. Notably, the firm updated the model after strong results.
Datadog Inc. (NASDAQ:DDOG) is a U.S.-based company that provides an observability service for cloud-scale applications. Its platform provides monitoring and analytics for servers, databases, tools, and services, delivered via a SaaS data analytics platform.
9. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 74
Cisco Systems, Inc. (NASDAQ:CSCO) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 12, UBS lifted its price target on Cisco Systems, Inc. (NASDAQ:CSCO)’s stock to $95 from $90, while keeping a “Buy” rating. The analyst highlighted that the company’s AI order momentum ramped up during the quarter, fueling FY 2026 revenue visibility and growth potential for FY 2027.
Seperately, on February 9, JPMorgan analyst Samik Chatterjee lifted the price objective on Cisco Systems, Inc. (NASDAQ:CSCO)’s stock to $95 from $90 while keeping an “Overweight” rating, as reported by The Fly. The analyst believes that the company’s stock is trading at the near-term peak valuation multiple. Despite the current trading levels, Cisco Systems, Inc. (NASDAQ:CSCO) has the potential to post upside to estimates, thanks to the revenue growth acceleration.
Furthermore, the firm opines that its partnership with Nvidia can help in enterprise AI adoption moving forward.
Cisco Systems, Inc. (NASDAQ:CSCO) is engaged in designing, developing, and selling technologies, which can help in powering, securing, and drawing insights from the internet. It offers data center switching, network security, identity and access management, etc.
8. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 88
Adobe Inc. (NASDAQ:ADBE) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 13, HSBC reduced its price objective on the company’s stock to $302 from $388, while keeping a “Hold” rating, as reported by The Fly. As per the firm, there are competitive risks for Adobe Inc. (NASDAQ:ADBE) from the AI-powered tools, which threaten to commoditize its core creative franchise.
In a separate release, Piper Sandler downgraded Adobe Inc. (NASDAQ:ADBE)’s stock to “Neutral” from “Overweight” with a price objective of $330, down from the prior target of $470. Notably, the firm believes that the seat-compression as well as vibe coding narratives might limit the multiple.
Earlier, Gabriela Borges from Goldman Sachs downgraded the company’s stock from “Buy” to “Sell” with a price objective of $290. Notably, the firm highlighted the concerns related to the potential scenarios in which Adobe Inc. (NASDAQ:ADBE)’s EPS growth might witness further pressure.
Adobe Inc. (NASDAQ:ADBE) operates as a technology company. The company’s customers use its integrated Creative Cloud, Document Cloud, and Experience Cloud solutions.
7. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 96
Intuit Inc. (NASDAQ:INTU) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 9, TD Cowen analyst Jared Levine reduced the firm’s price objective on the company’s stock to $658 from $802, while keeping a “Buy” rating, as reported by The Fly.
The moderately positive view is backed by the expectation of an easy beat against a low bar. This comes after the underperformance in the company’s shares. The firm highlighted investor hesitation related to the AI impacts and terminal values, tagging them as factors impacting the upside for the company’s stock.
In a separate release, on February 9, BMO Capital reduced its price target on Intuit Inc. (NASDAQ:INTU)’s stock to $624 from $810, while keeping an “Outperform” rating, as reported by The Fly. This comes after BMO’s annual survey of the US tax filers. The survey highlighted generally favorable trends for Intuit Inc. (NASDAQ:INTU)’s TurboTax product line.
The firm noted healthy metrics for TurboTax Full Service, which is an expanded local strategy, and constructive upsell as well as cross-sell opportunities. These are expected to help the company against difficult Live comparisons for FY 2026 results.
Intuit Inc. (NASDAQ:INTU) offers financial management, payments and capital, compliance, and marketing products and services. It carries out its operations via 4 segments, i.e., Global Business Solutions, Consumer, Credit Karma, and ProTax.
6. Snowflake Inc. (NYSE:SNOW)
Number of Hedge Fund Holders: 102
Snowflake Inc. (NYSE:SNOW) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 11, Goldman Sachs reduced its price objective on the company’s stock to $246 from $286, while keeping a “Buy” rating. As per the analyst, the firm is anticipating strong fundamentals to showcase resilience compared to the software sector.
Elsewhere, on February 6, BofA reduced its price objective on the company’s stock to $275 from $310, while keeping a “Buy” rating, as reported by The Fly. Notably, the firm highlighted the company as a top pick in the broader infrastructure software space. That being said, it changed the valuation methodology and revised forecasts amidst changed opinions on growth, peer multiple compression, and risks.
In a separate release, on February 2, Snowflake Inc. (NYSE:SNOW) and OpenAI signed a $200 million partnership agreement. The agreement focuses on providing advanced AI model capabilities to enterprise customers with the help of co-innovation and joint go-to-market efforts. Notably, OpenAI models such as GPT-5.2 would be accessible in Snowflake Intelligence.
Snowflake Inc. (NYSE:SNOW) offers a cloud-based data platform for several organizations.
5. ServiceNow, Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 104
ServiceNow, Inc. (NYSE:NOW) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 9, Mike Cikos, an analyst from Needham, maintained a “Buy” rating on the company’s stock, setting a price objective of $155.00. The analyst highlighted the factors supporting ServiceNow, Inc. (NYSE:NOW)’s robust growth. The customer adoption of ServiceNow, Inc. (NYSE:NOW)’s Pro Plus modules, primarily the Now Assist capabilities, remains healthy as a large US financial services client showcased the tangible benefits, clear use cases, etc.
Additionally, the analyst hinted at ServiceNow, Inc. (NYSE:NOW)’s operating metrics, which continue to exhibit strong momentum in the overall business. Notably, the annual contract value associated with Now Assist surpassed $600 million. This reflects robust demand for AI-driven offerings.
In a separate update, on February 5, Truist reduced its price objective on the company’s stock to $175 from $240, while keeping a “Buy” rating. The analyst believes that the broad-based sectoral decline was mainly due to the concerns associated with the terminal value instead of the near-term fundamentals.
ServiceNow, Inc. (NYSE:NOW) is engaged in offering cloud-based solutions for digital workflows.
4. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle Corporation (NYSE:ORCL) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 12, the United States Department of the Air Force (DAF) awarded the company an $88 million firm-fixed price task order. The order focuses on offering Oracle Cloud Infrastructure services for the Air Force Cloud One program, continuing Oracle Corporation (NYSE:ORCL)’s role as a partner in the Department of War cloud modernization efforts.
As a result of this program, DoW customers can capitalize on the performance, security as well as resiliency of OCI throughout classification levels. Notably, the work is expected to be performed at the contractor-specified facilities across the US and will run through December 7, 2028.
Separately, on February 9, DA Davidson upgraded Oracle Corporation (NYSE:ORCL)’s stock to “Buy” from “Neutral” with a price objective of $180. The firm believes that a revamped OpenAI would return to its position as Google’s top challenger in the broader AI space. Furthermore, as a result of fresh capital, OpenAI can fulfil the obligations this year, which include the commitments to Oracle.
Oracle Corporation (NYSE:ORCL) provides information technology-related products and services to enterprises through its main business segments: Cloud and License, Hardware, and Services. The company is based in Austin, Texas, and was founded in June 1977 by Lawrence Joseph Ellison, Robert Nimrod Miner, and Edward A. Oates.
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 243
Alphabet Inc. (NASDAQ:GOOGL) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 5, Monness analyst Brian White maintained a “Neutral” stance on the company’s stock, giving a “Hold” rating. The analyst’s rating is backed by a combination of factors, which are associated with Alphabet Inc. (NASDAQ:GOOGL)’s strengths as well as risks.
As per the analyst, the company is seeing the benefits of strong digital advertising trends amidst healthy momentum in Google Search and the ramp-up of Google Cloud’s revenue growth momentum and backlog. Apart from these factors, Alphabet Inc. (NASDAQ:GOOGL) continues to make strong progress in AI, added White. The company has been releasing new Gemini models and industry-focused AI solutions.
Despite the positive factors, White opines that the current valuation remains full, mainly due to the tough macroeconomic backdrop and strong competition in AI and cloud computing.
Elsewhere, on February 4, Alphabet Inc. (NASDAQ:GOOGL) released financial results for Q4 2025, with consolidated revenues rising 18% to $113.8 billion. This demonstrates healthy momentum throughout the business as well as growth acceleration in Google Services and Google Cloud.
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.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 332
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 14 Best Cloud Computing Stocks to Buy Right Now. On February 6, Bernstein analyst Mark Shmulik reduced the firm’s price objective on the company’s stock to $265 from $300 while keeping an “Outperform” rating, as reported by The Fly.
This comes after the company released its quarterly results. As per the firm, Amazon.com, Inc. (NASDAQ:AMZN) saw strong growth in AWS and a robust operating income beat (excluding one-off items). However, these were not sufficient to justify the capex of $200 billion, as well as weak guidance for Q1 2026.
Notably, on February 5, Amazon.com, Inc. (NASDAQ:AMZN) released its Q4 2025 results, with net sales rising 14% to $213.4 billion in Q4 2025 as compared to $187.8 billion in Q4 2024. Notably, AWS segment sales went up by 24% YoY to $35.6 billion. This segment saw the fastest growth throughout 13 quarters, with AWS now having an annualized revenue run rate of $142 billion.
The acceleration came off the back of both core and AI services, with customers continuing to modernize infrastructure as well as migrate workloads to the cloud. For Q1 2026, Amazon.com, Inc. (NASDAQ:AMZN) expects operating income of between $16.5 billion – $21.5 billion.
Amazon.com Inc. (NASDAQ:AMZN) operates across e-commerce, digital content, advertising, and cloud computing. Its online and offline stores offer both in-house and third-party products, while its Amazon Web Services (AWS) division runs one of the world’s largest data center networks.
While we acknowledge the potential of AMZN 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 AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
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