The AI boom multiplied the demand for cloud infrastructure, a sector where Amazon maintains leadership with about 35% participation.
For almost two decades, Amazon Web Services (AWS) It was the growth engine of Amazonboth for its profitability and for the attractiveness of their actions. However, the company faces a increasingly challenging scenario: The cloud competition intensified with Microsoft, Alphabet and a Oracle advance, which is weakening the position.
The rise of artificial intelligence (AI) multiplied the demand for cloud infrastructure, a sector where Amazon maintains leadership with about 35% participationalthough with prospects of fall by less than 20% in 2030. Microsoft, through Azure, is emerging to overcome AWS by 2029, while Oracle, thanks to billionaire contracts linked to AI, could reach a quota of 12%, even exceeding Google Cloud.
The pressure is reflected in the stock market. Amazon is about 25 times future profitsapproaching its greatest discount against the Nasdaq 100. In contrast index, Microsoft is located 32 times, and Oracle in 40, its highest ratio from the bubble Puntocom. Alphabet, with a multiple of 22, maintains a more stable differential.
In the second quarter, AWS showed deceleration signswith a growth lower than Microsoft and Alphabet, and with less traction in AI contracts in front of Oracle and Coreweave. According to Lionntrust analysts, the company “is not experiencing the same acceleration induced by the AI in its request for orders.”
Company’s actions are delayed
In this framework, The market punished the signals. Since September, Oracle’s actions rose more than 20% after announcing an optimistic prognosis, while Amazon lost 7.3% In the same period. For its part, Microsoft advanced 4% and Alphabet, 2.5%.
Oracle managed to position himself by signing strategic agreements, such as a contract with OpenAi valued at US $ 300,000 million in five years and negotiations with a goal for about US $20,000 million. This impulse explains its stock market rally and the enthusiasm of investors.
Despite the growing competition, The cloud market maintains an expansive horizon. Wall Street foresees an annual growth of 27% to 2030, with a higher expenditure AU $ S1.3 billion, which opens space for multiple actors, although the battle for profitability intensifies.
Amazon is still an undisputed leader, but the gap with his rivals is shortened. The success in the next decade will depend on its ability to recover prominence in the career of artificial intelligence.
Source: Ambito
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