Amazon, Alphabet, and Microsoft: Which 2 to Buy and Which 1 to Avoid

Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), and Microsoft (NASDAQ: MSFT) are all synonymous with the cutting edge of tech, and all have helped lead the way in the artificial intelligence (AI) trend. Consequently, they now incorporate AI in nearly every part of their businesses.

Amazon and Microsoft are the leaders in the cloud infrastructure space, with market shares of 28% and 20%, respectively, and their roles in cloud computing make them prominent in the AI field. By contrast, Alphabet (No. 3, with a 15% share) was an AI software pioneer and now leads the way with its Google Gemini AI engine and in autonomous driving through its Waymo subsidiary, which could meaningfully contribute to Alphabet's financials as soon as 2027.

However, only two of these stocks look like promising buys now. Investors should probably consider adding Amazon and Alphabet shares to their portfolios, but they should refrain from picking up Microsoft now. Here's why.

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