We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
3 Top Cloud Computing Stocks Worth Buying Before August
Read MoreHide Full Article
Key Takeaways
Alphabet's Google Cloud is expanding with AI, cybersecurity and enterprise cloud services.
CSCO helps enterprises modernize networks with cloud infrastructure and security solutions.
NET supports AI-powered workloads across public, private and hybrid cloud environments.
Cloud computing stocks have been among Wall Street’s strongest performers in 2026, driven by the rapid expansion of artificial intelligence (AI), enterprise digital transformation and rising demand for computing infrastructure. Businesses are accelerating cloud adoption to support AI models, data analytics and cybersecurity, while governments and large enterprises continue migrating critical workloads to the cloud. Investors have rewarded companies exposed to these long-term structural trends. Alphabet Inc. (GOOGL - Free Report) , Cisco Systems, Inc. (CSCO - Free Report) and Cloudflare, Inc. (NET - Free Report) are three such stocks that have been making the most of the current environment.
The sector has also benefited from heavy spending on data centers and AI infrastructure. Enterprises are increasing capital expenditure to build more powerful cloud environments capable of handling generative AI applications, creating a strong outlook for cloud-related revenue. Meanwhile, easing concerns over interest rates have supported high-growth technology stocks, as lower financing costs improve the valuation of companies expected to deliver robust earnings growth over the coming years.
Another key catalyst has been the improving corporate spending environment. Companies that delayed technology investments amid economic uncertainty are once again committing budgets to cloud migration, automation and software modernization. Recurring subscription-based revenue, high customer retention and expanding demand for cloud-native applications have strengthened investor confidence that the industry's growth can remain resilient even if the broader economy slows.
Investors looking ahead to August may find the sector attractive because several near-term catalysts remain in place, including continued AI-related spending, ongoing enterprise cloud adoption and a busy earnings season that could reinforce expectations for sustained revenue growth. Although valuations have become richer after this year's rally, cloud computing remains one of the market's most compelling long-term investment themes, supported by durable demand, expanding digital infrastructure and the central role cloud platforms play in the global AI revolution.
Alphabet, a Zacks Rank #2 company, is a leading cloud-computing provider through Google Cloud, offering AI infrastructure, Vertex AI, Gemini Enterprise, cybersecurity, data analytics and Google Workspace. Its expanding cloud platform is a key driver of enterprise digital transformation and AI adoption worldwide. GOOGL’s expected earnings growth rate for the current year is 64.8%. The Zacks Consensus Estimate for its current-year earnings has improved 24.6% over the past 60 days. Its shares have gained 4.3% year to date.
Cisco, a Zacks Rank #2 company, provides cloud networking and infrastructure solutions, enabling secure data centers, hybrid and multi-cloud environments, cybersecurity, observability and collaboration. Its technologies help enterprises modernize networks, strengthen cloud security and accelerate digital transformation worldwide. CSCO’s expected earnings growth rate for the current year is 12.3%. The Zacks Consensus Estimate for its next-year earnings has improved 1.5% over the past 60 days. Its shares have surged 48.7% year to date.
Cloudflare, a Zacks Rank #1 company, provides cloud-native networking, security and developer services, helping businesses secure applications, optimize performance and deploy AI-powered workloads across public, private and hybrid cloud environments through its global cloud platform. NET’s expected earnings growth rate for the current year is 30.1%. The Zacks Consensus Estimate for its next-year earnings has improved 9.9% over the past 60 days. Its shares have soared 34.7% year to date.
Bottom Line
Cloud computing remains one of the most compelling long-term investment themes as AI adoption, enterprise digital transformation and rising infrastructure spending continue to fuel demand. With strong earnings growth prospects, improving analyst estimates and favorable Zacks Ranks, Alphabet, Cisco and Cloudflare appear well-positioned to benefit from the sector's momentum heading into August and beyond.
View the Zacks #1 Rank List
Image: Bigstock
3 Top Cloud Computing Stocks Worth Buying Before August
Key Takeaways
Cloud computing stocks have been among Wall Street’s strongest performers in 2026, driven by the rapid expansion of artificial intelligence (AI), enterprise digital transformation and rising demand for computing infrastructure. Businesses are accelerating cloud adoption to support AI models, data analytics and cybersecurity, while governments and large enterprises continue migrating critical workloads to the cloud. Investors have rewarded companies exposed to these long-term structural trends. Alphabet Inc. (GOOGL - Free Report) , Cisco Systems, Inc. (CSCO - Free Report) and Cloudflare, Inc. (NET - Free Report) are three such stocks that have been making the most of the current environment.
The sector has also benefited from heavy spending on data centers and AI infrastructure. Enterprises are increasing capital expenditure to build more powerful cloud environments capable of handling generative AI applications, creating a strong outlook for cloud-related revenue. Meanwhile, easing concerns over interest rates have supported high-growth technology stocks, as lower financing costs improve the valuation of companies expected to deliver robust earnings growth over the coming years.
Another key catalyst has been the improving corporate spending environment. Companies that delayed technology investments amid economic uncertainty are once again committing budgets to cloud migration, automation and software modernization. Recurring subscription-based revenue, high customer retention and expanding demand for cloud-native applications have strengthened investor confidence that the industry's growth can remain resilient even if the broader economy slows.
Investors looking ahead to August may find the sector attractive because several near-term catalysts remain in place, including continued AI-related spending, ongoing enterprise cloud adoption and a busy earnings season that could reinforce expectations for sustained revenue growth. Although valuations have become richer after this year's rally, cloud computing remains one of the market's most compelling long-term investment themes, supported by durable demand, expanding digital infrastructure and the central role cloud platforms play in the global AI revolution.
Our Choices
The stocks below flaunt a Zacks Rank #1 (Strong Buy) or Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alphabet, a Zacks Rank #2 company, is a leading cloud-computing provider through Google Cloud, offering AI infrastructure, Vertex AI, Gemini Enterprise, cybersecurity, data analytics and Google Workspace. Its expanding cloud platform is a key driver of enterprise digital transformation and AI adoption worldwide. GOOGL’s expected earnings growth rate for the current year is 64.8%. The Zacks Consensus Estimate for its current-year earnings has improved 24.6% over the past 60 days. Its shares have gained 4.3% year to date.
Cisco, a Zacks Rank #2 company, provides cloud networking and infrastructure solutions, enabling secure data centers, hybrid and multi-cloud environments, cybersecurity, observability and collaboration. Its technologies help enterprises modernize networks, strengthen cloud security and accelerate digital transformation worldwide. CSCO’s expected earnings growth rate for the current year is 12.3%. The Zacks Consensus Estimate for its next-year earnings has improved 1.5% over the past 60 days. Its shares have surged 48.7% year to date.
Cloudflare, a Zacks Rank #1 company, provides cloud-native networking, security and developer services, helping businesses secure applications, optimize performance and deploy AI-powered workloads across public, private and hybrid cloud environments through its global cloud platform. NET’s expected earnings growth rate for the current year is 30.1%. The Zacks Consensus Estimate for its next-year earnings has improved 9.9% over the past 60 days. Its shares have soared 34.7% year to date.
Bottom Line
Cloud computing remains one of the most compelling long-term investment themes as AI adoption, enterprise digital transformation and rising infrastructure spending continue to fuel demand. With strong earnings growth prospects, improving analyst estimates and favorable Zacks Ranks, Alphabet, Cisco and Cloudflare appear well-positioned to benefit from the sector's momentum heading into August and beyond.