Amazon and Microsoft Lead the Cloud Market. One of Them Has Far Greater Upside.
Both Amazon and Microsoft dominate cloud computing with strong growth in AWS and Azure respectively. However, Amazon has greater upside potential due to its more established custom chip business, which has become a $20 billion run-rate business with 20-fold increases in commitments. Amazon's chip advantage provides cost savings and better returns than GPUs, positioning it ahead of Microsoft whose custom chip efforts are still in early stages.