Amazon experiences a decline after falling short in fulfilling investor expectations regarding growth in cloud computing services.
In the dynamic world of cloud computing, Amazon Web Services (AWS) continues to hold the largest market share, with a revenue base of $30.9 billion in Q2 2025, representing a 17.5% year-over-year growth [3]. However, its main competitors, Microsoft Azure and Google Cloud, are growing at a faster pace, particularly in AI-related cloud services [1][2][3].
With Microsoft Azure growing at 39% and Google Cloud at 32%, AWS's growth rate significantly lags behind, raising concerns that the market leader may be falling behind in the artificial intelligence cloud race [3]. As of now, AWS holds roughly 30% of the cloud market, while Microsoft and Google have about 20% and 13%, respectively [2].
Despite these concerns, Amazon CEO Andy Jassy has emphasised AWS's security strengths, larger scale ($123 billion annualized revenue run rate), and ongoing AI-related investments like its cost-efficient Trainium AI chips [1][2]. However, investors remain concerned due to AWS's slower cloud growth and Amazon's cautious profit outlook [2][3].
Investment firms and analysts have noted that AWS's backlog growth is "below peers," reflecting competitive pressure in AI infrastructure [4]. This competitive pressure was evident in the recent decline of Amazon's stock price by approximately 7%, a move attributed to investor fears about AWS falling behind Microsoft and Alphabet (Google) in the artificial intelligence race [5].
The cloud-computing market is being closely watched due to the competition between Amazon, Microsoft, and Alphabet (Google). As the race for AI cloud dominance heats up, it remains to be seen if AWS can maintain its lead or if it will cede ground to its competitors.
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- The growing pace of Microsoft Azure and Google Cloud in AI-related cloud services has raised concerns about Amazon Web Services (AWS) potentially falling behind in the artificial intelligence cloud race.
- Investment firms and analysts have observed that AWS's backlog growth is lagging behind its peers, which they attribute to competitive pressure in AI infrastructure.
- In the media, there's a growing focus on the competition between Amazon, Microsoft, and Google in data-and-cloud-computing and technology, especially as the race for AI cloud dominance heats up.
