Cloud AI Update - Cloud Computing's Transformative Growth and Future Opportunities

The global cloud computing market is experiencing significant growth, projected to expand from USD 766 billion in 2025 to USD 3.50 trillion by 2035, with a CAGR of 14.623%. This expansion is driven by advancements in hybrid cloud, SaaS, and AI technologies, with North America spearheading developments. Key challenges including rising service costs and security concerns remain, particularly for SMEs, but innovations like Artificial General Intelligence and IoT present opportunities. Major technology firms are making substantial investments in cloud capabilities, highlighting the significant role of cloud AI in transforming IT infrastructures and enhancing operational efficiencies worldwide.

In other trading, Oracle (NYSE:ORCL) was a standout up 13.3% and finishing the session at $199.86, close to the 52-week high. Over the last week, Oracle has announced enhancements to its cloud offerings with AMD, strategic partnerships with TakeUp and Seekr, and reported strong earnings growth for the latest quarter and full year. In the meantime, VMware (NYSE:VMW) lagged, down 5% to end the day at $142.48.

Oracle's strategic cloud investments and AI partnerships are poised to accelerate revenue growth soon. Discover more about Oracle's transformative journey by clicking through to our narrative on the company.

For a deep dive into the monetization and investment opportunities of AI in the cloud sector, revisit our Market Insights article, "AI Enters the 'Show Me The Money' Phase," where we explored successful AI deployment amidst evolving market dynamics—act fast before market conditions shift!

Best Cloud AI Stocks

• Microsoft (NasdaqGS:MSFT) closed at $478.87 up 1.3%, not far from its 52-week high. Two days ago, Microsoft announced strategic partnerships through its Devices Ecosystem Platform to advance intelligent device innovation and secure conferencing products.
• Apple (NasdaqGS:AAPL) settled at $199.20 up 0.2%. On Thursday, a new federal antitrust lawsuit was filed against Apple and others, alleging coordinated efforts to suppress standalone Wi-Fi calling.
• Alphabet (NasdaqGS:GOOGL) ended the day at $175.70 down 0.9%.

Turning Ideas Into Actions

• Get an in-depth perspective on all 164 Cloud AI Stocks, including NTT DATA Group, Box and Delta Electronics, by using our screener here.
• Curious About Other Options? The latest GPUs need a type of rare earth metal called Dysprosium and there are only 24 companies in the world exploring or producing it. Find the list for free.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Sources:

• Simply Wall St
• "Cloud Computing Market Forecast Report 2025-2035: Global Cloud Computing Market Forecasted to Reach $3.50 Trillion by 2035" from Research and Markets on GlobeNewswire (published 11 June 2025)

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