Three cloud stocks to buy for a rebound offer investors a chance to profit from a market rise once the tariff tumult tapers off.
The three cloud stocks to buy include two of the biggest names in technology. The growth of their share prices likely will not top some of the newest companies, but they also will not bring as much risk.
Citigroup recently reported that tariffs and retaliatory tariffs have not caused much, if any, impact so far on the spending of software and cloud customers.
“The budget environment for front-office technology spend remains tough and customers/prospects remain price-conscious,” Citigroup reported. “However, we also heard some green shoots and cautious notes of optimism, with certain platforms expecting a better growth year than 2024 and feeling more optimistic about the outlook for retail tech spend.”
Three Cloud Stocks to Buy for a Rebound: AMZN
Two of the cloud stocks to buy stand out as the strongest ones right now because they’re taking a clear, long-term approach to artificial intelligence (AI) infrastructure while others are moving more cautiously, said Robert Castellano, a senior analyst with Gilder’s Technology Report. One of them is Seattle-based Amazon (NASDAQ: AMZN), a company known more for its online sales than investing in the cloud.
However, Amazon, through its Amazon Web Services unit, is on track to spend more than $100 billion this year, with a large portion focused specifically on AI infrastructure, including custom silicon and high-performance data centers, Castellano told me. Amazon and Meta Platforms Inc. (NASDAQ: META) are compelling because they’re not just participating in the AI wave—they’re actively building the foundational platforms that will power it, he added.
George Gilder heads Gilder’s Technology Report.
“That level of conviction and control over their infrastructure positions them especially well for long-term growth,” said Castellano, who follows those issues closely in Gilder’s Technology Report.
Chart Courtesy of stockcharts.com.
Three Cloud Stocks to Buy for a Rebound: META
Menlo Park, California-based META is one of the biggest builders of cloud infrastructure in the world. The company’s massive data centers are the backbone of artificial intelligence workloads, enabling everything from search and social media to ChatGPT and recommendation engines. Capital expenditures (CapEx) from companies like META and Amazon fund the chips, networking gear, power, cooling, and software that make modern AI possible Castellano said.
“The latest figures confirm that the buildout is not slowing down,” Castellano wrote in a recent Gilder’s Technology Report. “In first-quarter 2025 alone, hyperscaler CapEx reached $93.8 billion—up 2% from the previous quarter and up 71% year-over-year. Updated full-year estimates now project global cloud CapEx to hit $402 billion in 2025 and $429 billion in 2026, both numbers revised upward from earlier expectations. Simply put: the cloud giants are still spending aggressively.”
In addition, Meta raised its 2025 CapEx forecast to as much as $72 billion, citing increased AI data center demand and higher hardware costs from tariffs. Google (NASDAQ: GOOGL) reaffirmed its $75 billion CapEx plan, with spending focused on servers and datacenter infrastructure for Google Cloud and DeepMind, Castellano added.
Chart Courtesy of stockcharts.com.
“One segment of the market that isn’t actually all that bothered by tariffs, but surged nevertheless, is big-tech stocks,” Jim Woods wrote to his Technical Trader advisory service subscribers in his latest weekly update on May 13. “The notion here is that lower tariffs will help the entire global economy to not descend into a recession. It also means that inflation pressures will subside and that the Federal Reserve is more likely to cut interest rates again in either June or July, or both.”
The risk-on trade in “best-of-breed” technology stocks is something a good tactical trader needs to seize, Woods added.
Paul Dykewicz talks to Jim Woods, head of Investing Edge and Technical Trader.
Three Cloud Stocks to Buy for a Rebound: CRWV
CoreWeave (NASDAQ: CRWV) is a favorite of Michelle Connell, a CFA who is president and owner of Dallas-based Portia Capital Management, LLC. Her reasons include:
- After having just gone public on March 28, CRWV will be reporting its first quarter as a public company soon.
- The company is an AI-focused, hyperscaler cloud company. The company also has a data center network across the United States and Europe.
- Nvidia, Microsoft and Cisco are customers as well as investors in the company. CoreWeave also helps Nvidia build out and scale its GPU technologies
- The AI infrastructure market is experiencing significant growth, with a projected CAGR (Compound Annual Growth Rate) of around 20% to 40%.
- Microsoft and Nvidia may comprise over 70% of sales. That could be a potential issue, especially since Microsoft has its own product.
- Microsoft, Amazon and Alphabet will have their own version of this product.
- CRWV has many important competitive advantages that will allow it to stay in front of its sizable competition.
“Thus, I believe that tech investors should keep watching the company,” Connell said “Given its lack of track record and large competitors, I would wait until after the earnings announcement to establish a position.”
Chart Courtesy of stockcharts.com.
The three cloud stocks to buy offer investors a chance to ride the rebound from tariff reductions and resumption of more normalized trade. Investors seeking to catch the wave now have three intriguing opportunities, among others.
Paul Dykewicz, www.pauldykewicz.com, is an award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Crain Communications, Seeking Alpha, Guru Focus and other publications and websites. Paul can be followed on Twitter @PaulDykewicz, and is the editor and a columnist at StockInvestor.com and DividendInvestor.com. He also serves as editorial director of Eagle Financial Publications in Washington, D.C. In that role, he edits monthly investment newsletters, time-sensitive trading alerts, free weekly e-letters and other reports. Previously, Paul served as business editor and a columnist at Baltimore’s Daily Record newspaper and as a reporter at the Baltimore Business Journal. Plus, Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many other sports figures. To buy signed and specially dedicated copies, call 202-677-4457.
