<div id="readability-page-1">Cloud computing makes it easier for companies and consumers to store data and become more efficient. Also, it more affordable to use cloud providers than it is to invest in the hardware which needs management. These benefits have resulted in a multi-year boom that isn’t slowing down. The cloud computing industry has a compounded annual growth rate (CAGR) of 16.8% through 2031. Artificial intelligence (AI) should keep growth rates elevated since AI tools rely on cloud platforms to process large amounts of data. Many tech giants have positioned themselves to benefit from the booming cloud industry. In addition, these same corporations have trounced the S&amp;P 500 over the past five years and look ready to extend their rallies. High revenue and net income growth are key components for each of these cloud stocks. Wondering which sky-high cloud stocks can take your portfolio higher? These are some of the top picks that can reward patient investors in the long run. <h2>ServiceNow (NOW)</h2> <div id="1614169"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Sundry Photography / Shutterstock.com</div>ServiceNow (NYSE:NOW) is up by 8% year-to-date (YTD) and has delivered a 146% gain over the past five years. The cloud platform features rising revenue and net profit margins. Luckily for long-term investors, it’s also feeling the heat from a bearish analyst. A Guggenheim analyst warned that generative AI revenue may not grow as quickly as anticipated. It’s possible, according to the bearish call, that this catalyst won’t come to fruition until 2025. ServiceNow is still rated as a strong buy with a projected 15% upside, so most analysts are still bullish. The bearish call has resulted in a sharp drop that presents a buy-the-dip opportunity. A look at recent earnings highlights the long-term potential. ServiceNow reported 24% year-over-year (YOY) revenue growth in the first quarter and raised its full-year guidance. Net income more than doubled YOY to reach $347 million. NOW has a 98% renewal rate among 8,100 customers. And some of them pay more than $1 million per year to use the company’s cloud platform. Therefore, ServiceNow looks ready to deliver long-term gains for patient investors. <h2>Amazon (AMZN)</h2> <div id="2203114"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: Tada Images / Shutterstock.com</div>Amazon (NASDAQ:AMZN) has the largest market share in the cloud computing industry. The company’s Amazon Web Services (AWS) makes up roughly one-third of the total market, and it’s growth is accelerating. The tech giant reported 13% YOY net sales growth across its business. AWS stood out with 17% YOY growth, bringing in $25.0 billion in the process. Furthermore, Amazon isn’t just winning in the cloud computing industry. Also, it is leading the way in e-commerce, advertising, groceries, streaming and other verticals. Each of these segments allows Amazon to show up in front of more consumers. It’s certainly been showing up for investors. Currently, Amazon stock is up by 33% YTD and have roughly doubled over the past five years. Wall Street analysts believe that the stock has more room to run. The average price target suggests an 11% upside for the consensus strong buy stock. The highest price target of $246 per share indicates that the stock can gain 23% from current levels. <h2>Microsoft (MSFT)</h2> <div id="2917871"><img src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="300" height="169" original-src="https://imageproxy.pbkrs.com/https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif"/>Source: shutterstock.com/tomeqs</div>The second-largest cloud provider, Microsoft‘s (NASDAQ:MSFT) cloud services are growing at a faster rate than Amazon’s. Microsoft Cloud generated $35.1 billion in Q3 of fiscal year 2024 which was 23% higher than the same period last year. AI is fueling more demand for the company’s cloud platform. The tech conglomerate as a whole reported 17% YOY revenue growth and 20% YOY net income growth. And, MSFT rewarded shareholders with some of its profits. The company poured $8.4 billion into share repurchases and dividends in the quarter. Microsoft currently trades at a 40 P/E ratio and has a 0.65% yield. Shares are up by 24% YTD and have gained 232% over the past five years. It’s a core component of the S&amp;P 500 and most funds in general. Wall Street analysts believe there’s more upside to the stock and have rated it as a strong buy. The average price target suggests a 9% gain from current levels. On this date of publication, Marc Guberti held long positions in NOW, AMZN, and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article. Marc Guberti is a finance freelance writer at InvestorPlace.com who hosts the Breakthrough Success Podcast. He has contributed to several publications, including the U.S. News &amp; World Report, Benzinga, and Joy Wallet.Cloud, Technology </div>

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Cloud computing is driving growth in the tech industry, particularly for companies like ServiceNow, Amazon, and Microsoft. These companies have strong revenue and net income growth, making them top picks for long-term investors. ServiceNow is still a strong buy despite a bearish analyst warning. Amazon has the largest market share in the cloud computing industry and is leading in other sectors as well. Microsoft's cloud services are growing at a faster rate than Amazon's, fueled by demand for its AI capabilities. These stocks have potential for further upside.

3 Sky-High Cloud Stocks Ready for Takeoff