3 Cloud Computing Stocks to Watch as Apple Goes All-In on AI
The big three cloud service providers might get even bigger thanks to Apple. With the announcement of Apple’s new approach to artificial intelligence (AI) called Apple Intelligence, three of the biggest cloud computing stocks are about to reach the next level of consumer exposure. That’s because Apple is now moving toward offering on-device, artificial intelligence through a partnership with OpenAI for its ChatGPT platform. While the AI itself will run on the device, much of the data analytics required to make it effective over the long run will be provided by Apple’s biggest cloud service suppliers.
Microsoft: A Beneficiary of Apple's AI Strategy
For investors taking positions in these stocks, buying now could be exceptionally lucrative as Apple pushes to revolutionize how the average person interacts with AI. Apple will need to spend billions of dollars on cloud infrastructure to support a future where millions of people actively rely on its AI services for daily tasks related to their phones and personal devices. Microsoft, in particular, stands out as one of the best cloud computing stocks to buy as Apple goes all-in on AI.
Though Apple largely transitioned away from using Microsoft’s Azure cloud computing system, it still partners with the company for several major features. Apple's decision to jump on the AI train presents a win-win situation for Microsoft, as it can derive revenue from Apple and analyze the usage data of ChatGPT to further improve the AI.
Alphabet's Role in Apple's Cloud Strategy
Another key player in Apple's cloud strategy is Alphabet (Google), which has been providing its Google Cloud Platform and Google Search engine to support Apple’s products for the better part of a decade. While Google may not be as directly involved in AI development for Apple’s products as Microsoft and OpenAI are, it is now Apple’s biggest cloud service provider since the company moved away from Microsoft Azure. Much of the cloud computing technology necessary to process all the data generated by Apple’s intelligence devices is likely to run through Google’s computers, increasing the company’s revenue from Apple-related services.
Amazon's Continued Relationship with Apple
At one point, Apple was Amazon’s biggest cloud service customer, relying heavily on AWS to operate its iCloud product line. Although Apple has diversified its cloud services across Google Cloud and Microsoft, Amazon continues to play a significant role in supporting Apple's cloud endeavors. With the introduction of Apple Intelligence and the data-intensive storage requirements that iCloud will likely have to implement, Amazon is poised to derive even more revenue from its relationship with Apple.
Considering Amazon Web Services’ success as a cloud computing provider, it’s evident why AMZN stock might be one of the best cloud computing companies to buy right now as Apple focuses on AI and cloud infrastructure.
