If I want to send someone an NFT that I purchased on AtomicHub as a gift, what do they need in order to receive it? Do they need a WAX Cloud Wallet?

They need a WAX wallet in order to receive the NFT but you can use the link below which will simplify the process of creating a WAX wallet for the person you are going to send the NFT to.

https://wax.giftnft.io/