3 Cloud Stocks to Buy Heading Into September

Oracle, Alphabet, and Amazon are positioned to benefit from accelerating cloud revenue growth tied to the AI infrastructure buildout, according to 247wallst.com. Oracle reported Q4 FY2026 EPS of $2.11 on revenue of $19.18 billion, with cloud infrastructure growing 93% and RPO reaching $638 billion. Alphabet's Google Cloud accelerated to 82% growth in Q2, reaching $24.77 billion, while Amazon's AWS posted its fastest growth in 18 quarters.

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 . 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