In this article, we will explore the 8 Best Cloud Computing Stocks to Buy in 2026.
Cloud computing continues to take center stage in the stock market as AI infrastructure spending grows, showing no signs of slowing. While investors previously asked about AI spending ROI, they’re now wondering why their company can’t spend more. The demand is so high that specialized cloud computing companies have emerged, offering only compute capacity for AI and high-performance computing workloads.
These companies, also referred to as ‘neoclouds’, prove that the demand for cloud computing services is skyrocketing. Some are taking on billions of dollars in debt just to capitalize on this enormous opportunity. Talking on the CNBC show ‘Squawk on the Street’, CoreWeave CEO Mike Intrator mentioned how we are still early into the cloud computing demand while calling out the risks involved in scaling to meet that demand:
That ramp comes with an enormous opportunity to drive margins as we continue to grow, but we need to have an opportunity to scale, and scaling is expensive.
Without a doubt, cloud computing will flourish as AI technologies develop. To benefit from this, we decided to create our list of the 8 best cloud computing stocks to buy in 2026.
Our Methodology
To come up with our list of 8 best cloud computing stocks to buy in 2026, we looked at various cloud computing ETFs to compile a list of companies in the industry. We then filtered out companies with a market cap of at least $2 billion and reasonable upside over the next 12 months, according to analysts. These companies have reported recent investor-worthy news and are ranked in ascending order of their potential upside.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Note: All share price data in the article is as per market close on May 1.
8. Procore Technologies, Inc. (NYSE:PCOR)
Potential Upside: 21.4%
On April 21, Andrew Sherman, an analyst at TD Cowen, maintained a Buy rating on Procore Technologies, Inc. (NYSE:PCOR) while lowering the firm’s price target to $75 from $85. The firm’s revised price target implies an additional 26.4% upside from the current levels. This update has come just before the company is set to announce its Q1 2026 earnings. TD Cowen expects improved sales and increased guidance for fiscal year 2026, together with a 20% increase in the company’s remaining performance obligation (RPO).
On April 20, Procore Technologies added a new member to its board by appointing Columbia University computer science professor and AI leader, Vishal Misra, as an independent Class III director. According to the company, Misra was hired to strengthen its AI capabilities and support its AI-powered construction management plan. Misra is an experienced leader in technology and digital media. By appointing him, Procore is strengthening its position as the market leader as demand for infrastructure and smart, modern construction grows.
Procore Technologies, Inc. (NYSE:PCOR) offers a cloud-based construction management platform, along with related products and services. It operates across the United States and international markets. The company’s platform allows architects, owners, engineers, and general and specialty contractors to coordinate on construction projects.
7. Microsoft Corporation (NASDAQ:MSFT)
Potential Upside: 33.3%
Microsoft Corporation (NASDAQ:MSFT) reported its third-quarter fiscal 2026 earnings on April 29. Earnings per share came in at $4.27, marking a 21% increase. Revenue from Azure and other Cloud Services grew 40%. The company reported a gross margin of 68%, which declined year-over-year due to continued spending on AI infrastructure and higher usage of AI products. Strong cloud billings and collections pushed operating cash flow up 26% to $46.7 billion.
Heading into earnings week, Moody’s Corporation announced the next phase of its strategic alliance with Microsoft Corporation (NASDAQ:MSFT), in which the firm’s decision-grade intelligence is directly integrated into Microsoft AI solutions. The agentic workflows and decision-grade intelligence are incorporated into Microsoft 365 Copilot via the Model Context Protocol. In addition, tools like Copilot Chat and the Researcher agent can be used to conduct financial analysis and retrieve company data, making it easier to research without switching between programs.
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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