12 Best Edge Computing Stocks to Invest in According to Analysts

10. Microsoft Corporation (NASDAQ:MSFT)

Average Analyst Upside: 10.54%

Number of Hedge Fund Holders: 279

Microsoft Corporation (NASDAQ:MSFT), headquartered in Redmond, Washington, is a leading multinational technology company known for its flagship software products, including Windows operating systems, the Microsoft 365 suite, and the Edge web browser. Its cloud platform, Microsoft Azure, has emerged as a key player in edge computing, advancing both hardware and software initiatives in the field.

On December 5, Bernstein emphasized a major milestone for Microsoft’s artificial intelligence segment, projecting it will surpass a $10 billion revenue run rate by the end of the next quarter. The firm noted that Microsoft AI, which includes Azure AI and various Copilot solutions, is showing notable revenue stability, driven less by startups training large language models (LLMs) and more by enterprise inferencing and established partnerships, such as with OpenAI. The AI revenue comprises two main streams: SaaS Copilots (excluding GitHub Copilot, which is part of Azure) and Azure AI, with GitHub Copilot also contributing significantly.

In Q1 FY2025, Microsoft Corporation (NASDAQ:MSFT) reported a 16% year-over-year revenue increase to $65.6 billion, with Microsoft Cloud leading the charge. The cloud division recorded $38.9 billion in revenue, a 22% increase from the prior year, highlighting strong growth across cloud-based services.