<div id="readability-page-1">This era of artificial intelligence and cloud computing has led to companies pouring billions into the segment. Cloud computing service providers have benefitted from the AI hype, where they provide the cloud infrastructure where AI systems can be used. Companies have successfully managed to save millions in data center costs, and some of the biggest tech giants are aggressively building new data centers to cater to the rising demand. This calls for a focus on the top cloud computing stocks of the year. With the adoption of AI, higher cloud capacity will be required. The industry is poised for massive growth, and despite the rising competition, a few companies continue to rule it. If you want to make the most of the demand for cloud computing, here are three cloud computing stocks to add to your portfolio this year. These are some of the most promising stocks in the industry. <h2>Microsoft (MSFT)</h2> <div id="1568848"><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: NYCStock / Shutterstock.com</div>One of the top tech companies, Microsoft (NASDAQ:MSFT) is known for innovation and is a leader in the tech space. The most valuable company in the world, Microsoft is making the most of AI and cloud computing. Its investment in AI is already paying off, and the company’s most significant revenue generator is the cloud computing segment. Up 7% year-to-date, Microsoft stock is exchanging hands for $402 and is trading much lower than the 52-week high of $468. I believe the current dip is a chance to pounce on this high-quality stock. In the recent quarterly results, the company saw a 15% year-over-year increase in revenue to $64.7 billion and a 10% jump in net income to $22 billion. Earnings per share came in at $2.95, up 10% from last year. The cloud segment accounted for a revenue of $28.5 billion, which saw a 29% jump. While it was below the firm’s guidance of a 30% to 31% increase, it is still impressive. If you look at the bigger picture, Microsoft is leading the cloud computing segment, and I believe it will continue to benefit from the rapid demand for Azure. Regarding AI and cloud computing, Microsoft continues to dominate the market. <h2>ServiceNow (NOW)</h2> <div id="2250790"><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) offers software that allows consumers to migrate their data to the cloud. It also owns data centers that support the solutions. Unlike other companies, it didn’t start investing in AI last year but has been investing in it for many years, and this investment has begun to reap benefits now. The one reason I put this stock on the list is its subscription revenue and the high renewable rate. ServiceNow has an enviable renewal rate of 98%. In the recent quarter, it saw a 23% jump in subscription revenue to $2.5 billion, and the current outstanding performance obligations stood at $8.8 billion, up 22%. After a stellar quarter, the management raised the full-year subscription revenue guidance to $10.6 billion, aiming for a 22% year-over-year growth. While its valuation has significantly increased over the past year, I like the stock now because of its strong operating margin, cash flow, and impressive clientele. ServiceNow used to sell its product independently earlier but has recently partnered with Microsoft and Nvidia (NASDAQ:NVDA) to develop generative AI tools. It managed to sign 11 deals for its product, Pro Plus, worth over $1 million in the quarter. The company has expanded to the Middle East and will launch ServiceNow UAE to cater to the companies there. Exchanging hands for $800, NOW stock is up 12% YTD and 12% this year. <h2>Oracle (ORCL)</h2> <div id="1425474"><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: Jer123 / Shutterstock.com</div>Oracle (NASDAQ:ORCL) is a legacy business that has seen several market ups and downs. With growing investment in AI, Oracle is on its way to becoming an industry leader. It is already building 100 data centers and has partnered with Microsoft. Oracle has also partnered with OpenAI to expand the Microsoft Azure platform and provide additional capacity for OpenAI. Besides Microsoft, Oracle has partnerships with Palantir (NYSE:PLTR) and industry leader Nvidia. In the recent quarter, Oracle saw a 3% YOY rise in revenue to $14.3 billion and cloud infrastructure revenue jumped 42% YOY to $2 billion. In the third and the fourth quarter, the company signed the largest sales contracts in its history, driven by the demand for cloud and AI large language models. For the fourth quarter alone, it managed to ink over 30 AI-centric contracts worth more than $12 billion. Oracle has established itself as a leader in the cloud segment. Its remaining performance obligations at $98 billion show its strength amid the competitive industry. Up 22% YTD, Oracle stock is exchanging hands for $129 and enjoys a dividend yield of 1.2%. Oracle’s strong relationships with Fortune 500 companies allow it to sell its AI solutions and cloud expertise. On the date of publication, Vandita Jadeja did not hold (either directly or indirectly) any positions in the securities mentioned in this article. 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 held a LONG position in NVDA and PLTR. Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.Technology, Cloud </div>

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The era of artificial intelligence and cloud computing has led to significant investments in the sector. This calls for a focus on the top cloud computing stocks of the year. Microsoft, ServiceNow, and Oracle are three companies leading in this space. Microsoft is dominating the market with its cloud computing segment, while ServiceNow offers software and has a high renewal rate. Oracle is building data centers and partnering with industry leaders. These stocks present promising opportunities for investors.

- Companies are heavily investing in AI and cloud computing, benefiting cloud service providers. Major tech giants like Microsoft are excelling in this space, with significant revenue from cloud computing. Microsoft's recent results show a strong performance in the cloud segment, positioning it well for future growth in AI and cloud computing. 
- ServiceNow, with a high subscription renewal rate, is experiencing substantial revenue growth and expanding its AI capabilities through partnerships. The company's focus on cloud migration solutions and strong financials make it a promising stock in the industry. 
- Oracle, amidst market fluctuations, is strengthening its position in cloud infrastructure with partnerships and significant revenue growth. The company's strategic alliances and focus on AI solutions contribute to its leadership in the competitive cloud computing sector.

The Sky’s the Limit for These 3 Cloud Computing Stocks in 2024