Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT) are the No. 1 and No. 2 companies, respectively, in the cloud infrastructure space. While Amazon pioneered the industry, Microsoft drove its recovery from the decline of the PC industry, primarily by pivoting to the cloud. Consequently, each stock has focused heavily on artificial intelligence (AI), a technology that relies heavily on the cloud for support.

Admittedly, both companies are among the largest companies in tech. Also, they both have large cash hoards and diverse income streams, so both AI stocks will likely outperform the S 500. Still, between the two, one probably holds the potential for higher returns.

Image source: Synergy Research Group.

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Source Fool.com