5 Cloud Stocks Set To Rally In The Second Half Of 2020

Digitalization isn’t new but the pandemic has surely bumped up corporate spending on cloud computing, digital transformation, big data analytics and AI. The coronavirus outbreak drove the remote working trend, forcing businesses to reset priorities.

This is surely fuelling the top line of software companies, especially, cloud stocks as more and more companies continue to shift from on-premise software to applications on the cloud.

Work-and-Play-From-Home Trend Boosts Cloud Stocks

Even as the pandemic has halted several business operations, cloud stocks have been skyrocketing since the outbreak. The adaptation of cloud-based services is now-growing faster as people rely more on their products and services to work and play from home.

Technology giants like Microsoft are focusing more on cloud computing and software-as-a-service. This is because companies are looking for more administrative, workflow and collaboration tools to integrate their remote working employees and create a virtual office-like environment. In fact, bigger companies require more sophisticated cloud architecture to shift their data and software applications online.

So far this year, Tencent Holdings Limited (TCEHY - Free Report) has hired more than 3,000 employees for its cloud division. The company is taking aggressive measures to position its cloud business and beat its rival Alibaba Group in capturing the China cloud market. The additional employees will help the company improve its cloud servers designed in-house and help speed up cloud and smart city projects.

The gaming and software giant announced in May that it will invest $70 billion over the next five years in building technology infrastructure, especially cloud computing.

The digital-first operation has also boosted chipmakers like Micron Technology. In fact, with the surge in demand for cloud computing, 5G expansion, and new generation of gaming consoles and personal computing devices, these chip makers have a radiant future.

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