Will AI create the world’s first trillionaire?\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/a><\/p>\n Let’s look at the underlying business fundamentals to find out.<\/p>\n Amazon is firing on all cylinders, particularly in cloud computing<\/a>.<\/p>\n In the fourth quarter of 2025, the e-commerce giant reported a 14% year-over-year increase in net sales to $213.4 billion.<\/p>\n But its cloud computing business, Amazon Web Services, is seeing meaningfully faster growth than its consolidated business. This crucial segment generated $35.6 billion in revenue during the period, representing a 24% year-over-year growth rate. That is a notable acceleration from the 20% growth Amazon Web Services reported in the third quarter of 2025. Management specifically pointed to customer demand for AI workloads as a major driver of this momentum.<\/p>\n But achieving growth like this requires significant investment. Amazon expects to outlay approximately $200 billion in capital expenditures in 2026. While the company anticipates strong long-term returns on this capital, spending at that scale leaves little room for execution missteps.<\/p>\n Alphabet’s recent performance is arguably even more impressive. The search giant posted consolidated revenue of $113.8 billion for the fourth quarter of 2025 — up 18% from the year-ago period.<\/p>\n Like Amazon, Alphabet is seeing outsize benefits from the artificial intelligence boom — but even more so. Its Google Cloud business saw revenue jump an incredible 48% year over year to $17.7 billion in the fourth quarter. This cloud computing segment is now operating at an annual run rate exceeding $70 billion.<\/p>\n And Alphabet’s core Google Services business remains highly lucrative, with search and other revenue growing 17% year over year in Q4.<\/p>\n Also similar to Amazon, Alphabet is forecasting substantial spending this year. The company anticipates its 2026 capital expenditures will land between $175 billion and $185 billion as it builds out capacity to meet surging customer demand.<\/p>\n Story Continues <\/p>\n Both companies are spending huge sums of money to capture the AI opportunity, but Alphabet seems to be getting a more immediate payoff in its cloud division.<\/p>\n When comparing the two, Alphabet’s 48% cloud growth rate handily beats Amazon’s 24% pace. Further, AI seems more complementary to Alphabet’s entire ecosystem, enhancing everything from search results to YouTube recommendations in a material way.<\/p>\n Indeed, Alphabet CEO Sundar Pichai noted in the company’s fourth-quarter update that AI is driving “an expansionary moment” in its core search business.<\/p>\n Then there is the valuation.<\/p>\n Alphabet trades at a price-to-earnings ratio of about 25. Amazon, meanwhile, carries a slightly higher price-to-earnings ratio of around 28.<\/p>\n Choosing between these two tech giants is tough, as they both look attractive after their recent pullback. But if I had to choose one, I believe Alphabet is the better buy today. The search company offers both much faster cloud growth and a slightly cheaper valuation, giving investors a better setup for the long haul.<\/p>\n Of course, there are risks with both stocks. For instance, if the payoff from their respective infrastructure build-outs takes longer than anticipated, both companies could see their profit margins pressured. Still, given its exceptional cloud momentum and lower valuation multiple, I think Alphabet is a compelling investment here.<\/p>\n Before you buy stock in Alphabet, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Alphabet wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $503,861!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,026,987!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 884% \u2014 a market-crushing outperformance compared to 179% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of March 30, 2026. <\/p>\n Daniel Sparks<\/a> and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Amazon. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/03\/69d04d190f4dff3c805fe97b10a6f267.png\")
Image source: The Motley Fool. <\/p>\n