Microsoft, Amazon seen 'standing out' from strong cloud spending, Jefferies says

Jefferies says Microsoft and Amazon are standing out in a survey of enterprise cloud spending, with cloud budgets expected to accelerate modestly in 2026. The report suggests total cloud spend will rise to 10.1% in 2026 from 9.6% in 2025, supporting continued demand for major cloud providers. Microsoft appears to have the strongest momentum, with CIOs favoring Azure by a wider margin than before and surveyed spending trends tilting further toward Azure over AWS. The note also says AI adoption should benefit the leading cloud platforms, with Microsoft and Amazon positioned as top beneficiaries. Google Cloud is described as a potential “dark horse,” but the overall message is constructive for large-cap cloud and AI infrastructure exposure, reinforcing a positive outlook for MSFT shares.