The Better AI Cloud Stock: Microsoft or Amazon?

Microsoft and Amazon dominate cloud computing with Azure and AWS respectively, both investing heavily in AI infrastructure. Microsoft's Azure grew 40% last quarter with a 46% operating margin and lower valuation (23x P/E), while Amazon's AWS accelerated to 28% growth—its fastest in 15 quarters—but trades at a higher valuation (29x P/E). The analyst favors Microsoft due to superior growth relative to valuation, though both face risks from margin pressure and need to prove returns on massive AI spending.