Amazon and 2 Other Cloud Stocks Are Still Seen as the Best AI Plays. Here’s Why.

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The firm reiterated Outperform ratings on Amazon, Microsoft, and Alphabet, citing its latest annual survey results.

TD Cowen is growing more optimistic about the prospects for the ability of generative artificial projects to boost demand for major cloud computing vendors.

Cloud computing’s “cost savings cycle makes way for burgeoning Gen AI,” the team wrote. The customer responses were “positive for AWS [Amazon Web Services], [Microsoft] Azure, and GCP [Google Cloud Platform].” The firm’s stock price target is $165 for Amazon, $390 for Microsoft, and $150 for Alphabet. Amazon shares rose 1.8% to $131.42 on Monday, while Microsoft fell 0.2% to $316.24, and Alphabet traded up 0.4% to $130.79.

 

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