12 Best Edge Computing Stocks to Invest in According to Analysts

2. NVIDIA Corporation (NASDAQ:NVDA)

Average Analyst Upside: 24.36%

Number of Hedge Fund Holders: 193

NVIDIA Corporation (NASDAQ:NVDA), a leading innovator in the semiconductor industry, has established itself as a key player in the edge computing landscape. Its edge computing solutions harness the power of NVIDIA’s GPUs and AI capabilities to tackle the unique challenges and opportunities of processing data at the network’s edge. NVIDIA’s EGX Edge Computing Platform empowers organizations to deploy, manage, and scale edge computing solutions across distributed infrastructures. This platform combines a unified software stack with hardware infrastructure that can be implemented across various edge devices.

Citi recently reaffirmed its positive outlook on NVIDIA Corporation (NASDAQ:NVDA), maintaining a Buy rating and a $175 price target. The firm emphasized the strategic advantage of NVIDIA’s GPUs, particularly their software reprogrammability through CUDA, which enables adaptability to diverse workloads. Citi also noted supply chain developments, predicting that NVIDIA’s allocation of CoWoS foundry capacity will rise to 60% in 2025, up from 56% in 2024, further bolstering its growth trajectory.

In Q3 2024, NVIDIA Corporation (NASDAQ:NVDA) reported impressive revenue of $35.1 billion, reflecting a 17% sequential increase and a remarkable 94% year-over-year growth. This surge was primarily driven by robust AI hardware demand, with the company’s data center services and Blackwell AI chip playing a pivotal role. These developments have heightened expectations for continued growth in the coming year.

Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”