Cloud Computing Fuels Growth for Tech Giants
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Should l Buy GOOGL?
Source: Fool
- Surging Cloud Demand: The demand for cloud computing has skyrocketed with the rise of artificial intelligence, allowing cloud giants like Microsoft, Amazon, and Alphabet to generate substantial profits by renting out computing power, thereby solidifying their market positions.
- Significant AWS Contribution: Amazon's cloud division, AWS, accounted for 50% of the company's operating profits in Q4 2022, with an even higher contribution of 66% in Q3, highlighting the critical role of cloud computing in Amazon's overall business.
- Rapid Growth of Google Cloud: Google Cloud is Alphabet's fastest-growing division, boasting a year-over-year growth rate of 48%, indicating that Alphabet's investments in data center infrastructure are justified and will support future business expansion.
- Massive Potential of Microsoft Azure: Although Microsoft does not disclose specific revenue figures for Azure, its impressive 39% growth rate during the quarter suggests that Azure is a significant cash cow for the company, which is actively expanding its cloud capabilities to meet market demand.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cloud Computing Growth: Google Cloud's revenue surged 48% year-over-year in Q4, making it the fastest-growing among major cloud competitors, indicating its increasing popularity for AI application development, particularly due to its custom chips that offer better cost performance.
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