The two largest cloud companies are Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN), which together control about half of the market. Though Amazon is the biggest, with an estimated ~30% share, Microsoft has been making up some of that ground.
Microsoft’s momentum has been particularly evident in Azure, which grew 40% last quarter. However, it’s not as though Amazon Web Services (AWS) is standing still, having posted its strongest growth in more than three years at 28%.
This bonanza doesn’t come cheaply, however, and the duo are paying a pretty penny to support their AI infrastructure investments. Microsoft is expecting $190 billion in capex for 2026, while Amazon has projected an even higher $200 billion for the year.
Despite the similarities, the two stocks have taken different paths over the past year, with Amazon gaining about 14% year-to-date, while Microsoft is down nearly 18%.
That’s one reason top investor Daniel Sparks thinks MSFT is the better option.
