# 3 Cloud Stocks to Buy Heading Into September > Source: > Published: 2026-08-25 11:00:18+00:00 Heading into September, the [AI infrastructure buildout](https://247wallst.com/investing/2026/08/22/ais-absurd-spending-boom-hyperscalers-are-spending-102-of-cloud-revenue-on-capex/) is showing up in cloud revenue growth rates that are accelerating. All three of the hyperscalers below reported cloud segment growth that either hit multi-quarter highs or reaccelerated in the most recent quarter, and each is pouring capital into capacity that customers have already contracted. That combination, accelerating top-line with locked-in demand, is what typically separates the winners from the also-rans as the [AI capex cycle](https://247wallst.com/investing/2026/08/22/ais-absurd-spending-boom-hyperscalers-are-spending-102-of-cloud-revenue-on-capex/) matures. Here are three cloud names positioned for the back half of the year, each with a tool-verified data point, a bull case, and a risk to weigh. ## Oracle: The Highest-Beta Way to Play AI Infrastructure **Oracle** ([NYSE:ORCL](https://247wallst.com/companies/ORCL/) | [ORCL Price Prediction](https://247wallst.com/companies/orcl/price-prediction)) is the most controversial name on this list, and also the one with the biggest gap between fundamentals and stock price. Shares closed at $142.45, down 26.2% year to date and 39.05% over the trailing year, even as the business puts up numbers that support the underlying thesis. In Q4 FY2026, Oracle posted EPS of $2.11 on revenue of $19.18 billion. Cloud Infrastructure grew 93% and Remaining Performance Obligations reached $638 billion, which management described as providing "exceptional visibility" into future revenue. Guidance calls for $90 billion in FY2027 revenue and non-GAAP EPS of $8.05, with Q1 cloud revenue guided to grow 58%-64%. The bull case: an independent model pegs Oracle at a one-year target of $210.20, or 47.56% upside, with analyst sentiment at 84% bullish. A book of business worth more than nine years of current revenue, if it converts on schedule, sets up multi-year compounding. The caveat: Oracle’s FY2026 free cash flow was -$23.7 billion, and management guided FY2027 net cash capex to around $70 billion, with plans to raise roughly $40 billion in debt and equity. Execution risk on [data-center ramps](https://247wallst.com/investing/2026/07/10/billionaire-tech-ceo-our-25-billion-backlog-shows-the-demand-is-booked-as-weve-never-seen-a-buildout-like-this-since-the-great-wall-of-china/) and component costs is real. ## Alphabet: Google Cloud Is Reaccelerating Into a Peak Cycle **Alphabet** ([NASDAQ:GOOGL](https://247wallst.com/companies/GOOGL/)) delivered a Q2 result that is difficult to argue with. EPS came in at $9.11 against a $3.04 consensus, revenue rose 24.2% year over year to $119.80 billion, and Google Cloud accelerated to 82% growth, reaching $24.77 billion. That is a sequential acceleration from Q1’s 63%, with backlog exceeding $460 billion. CEO Sundar Pichai framed the setup directly: "Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions." Gemini now processes 22 billion API tokens per minute, the Gemini App has 950 million monthly active users, and nearly 90% of the Fortune 100 use Gemini Enterprise. The bull case rests on valuation and momentum together. Alphabet trades at a forward P/E of 17, unusual for a company compounding cloud revenue at this rate. Shares are up 69.37% over the past year, and the independent model targets $440.58, roughly 26.58% upside, with 91% bullish analyst sentiment. The caveat: Q2 capex hit $44.92 billion and free cash flow swung to -$5.86 billion. Long-term debt climbed from $46.5 billion to $98.2 billion, and the buyback was suspended in Q2. Investors get accelerating cloud, but they are paying for it in balance-sheet expansion. ## Amazon: AWS Just Posted Its Fastest Growth in 18 Quarters **Amazon** ([NASDAQ:AMZN](https://247wallst.com/companies/AMZN/)) reasserted itself in the cloud narrative in Q2. AWS revenue reached $42.2 billion, up 36.7% year-over-year, described by management as AWS’s fastest growth in 18 quarters, with acceleration for the fifth straight quarter. AWS operating income was $16.6 billion on a 39% operating margin. Backlog stands at $496 billion. Andy Jassy laid out the AI monetization case bluntly: "AWS, which is booming right now." Amazon’s chips business and AI business each carry annualized run rates over $25 billion, growing triple-digit percentages. Jassy also floated the long-term ceiling: AWS could "very possibly be a trillion dollar annual revenue business for us in time." The bull case is a rare combination of growth acceleration and profitability. Shares are up 13.54% year to date and closed at $262.07. The independent model targets $340.77, roughly 30.03% upside, backed by 95% bullish analyst sentiment. The caveat: Q2 cash capex hit $53.1 billion, trailing-twelve-month free cash flow is -$7.6 billion, and reported net income was inflated by a $53.4 billion Anthropic-related gain. Near-term free cash flow will stay under pressure until AI capacity is fully monetized. Data-center servers, per management, take a little less than three years to break even. Three cloud businesses, three different risk profiles, one shared thesis: AI infrastructure spend is now flowing through the income statement, and September earnings and capex commentary will determine whether that translates into a stronger second half or a valuation reset. The hyperscalers are one way to play the buildout; the power, cooling, and networking suppliers behind them are another, and we pulled seven of those names into a [free report you can grab here](https://247wallst.com/pages/ai-power-seven-offer-d905ec99.html). *Contact [email protected] for any questions or corrections.*