3 Cloud Stocks to Buy Heading Into September

AWS grew 37%, its fastest pace in 18 quarters, while Google Cloud accelerated to 82%, both backed by massive contracted backlogs.

Oracle trades 26% lower year-to-date despite $638 billion in contracted backlog and analyst targets pointing to 48% upside.

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Heading into September, the AI infrastructure buildout is showing up in cloud revenue growth rates that are accelerating. All three of the hyperscalers below reported cloud segment growth that either hit multi-quarter highs or reaccelerated in the most recent quarter, and each is pouring capital into capacity that customers have already contracted. That combination, accelerating top-line with locked-in demand, is what typically separates the winners from the also-rans as the AI capex cycle matures.

Here are three cloud names positioned for the back half of the year, each with a tool-verified data point, a bull case, and a risk to weigh.

Oracle: The Highest-Beta Way to Play AI Infrastructure

Oracle ( NYSE:ORCL ) is the most controversial name on this list, and also the one with the biggest gap between fundamentals and stock price. Shares closed at $142.45, down 26.2% year to date and 39.05% over the trailing year, even as the business puts up numbers that support the underlying thesis.

In Q4 FY2026, Oracle posted EPS of $2.11 on revenue of $19.18 billion. Cloud Infrastructure grew 93% and Remaining Performance Obligations reached $638 billion, which management described as providing "exceptional visibility" into future revenue. Guidance calls for $90 billion in FY2027 revenue and non-GAAP EPS of $8.05, with Q1 cloud revenue guided to grow 58%-64%.

The bull case: an independent model pegs Oracle at a one-year target of $210.20, or 47.56% upside, with analyst sentiment at 84% bullish. A book of business worth more than nine years of current revenue, if it converts on schedule, sets up multi-year compounding.

The caveat: Oracle's FY2026 free cash flow was -$23.7 billion, and management guided FY2027 net cash capex to around $70 billion, with plans to raise roughly $40 billion in debt and equity. Execution risk on data-center ramps and component costs is real.

Alphabet: Google Cloud Is Reaccelerating Into a Peak Cycle

Alphabet ( NASDAQ:GOOGL ) delivered a Q2 result that is difficult to argue with. EPS came in at $9.11 against a $3.04 consensus, revenue rose 24.2% year over year to $119.80 billion, and Google Cloud accelerated to 82% growth, reaching $24.77 billion. That is a sequential acceleration from Q1's 63%, with backlog exceeding $460 billion.