12 Best Edge Computing Stocks to Invest in According to Analysts

5. Akamai Technologies, Inc. (NASDAQ:AKAM)

Average Analyst Upside: 20.46%

Number of Hedge Fund Holders: 30

Akamai Technologies, Inc. (NASDAQ:AKAM) is a cloud computing company serving the SaaS industry by providing solutions for security, analytics, and the delivery of media and content. One of the world’s largest Content Delivery Networks (CDN), the company manages a significant share of the internet’s daily data flow. Founded during the dot-com era, the company has demonstrated steady growth, keeping pace with the rising demand for internet traffic.

On December 2, Oppenheimer upgraded Akamai’s stock from Perform to Outperform, with a price target of $120. This upgrade follows significant consolidation in the CDN sector, where the number of key players has dropped from six to three. The closure of Edgio, a competing CDN provider, has improved industry volumes and pricing, reducing price competition and creating a more favorable market environment. Akamai Technologies, Inc. (NASDAQ:AKAM) has also strengthened its position by expanding its offerings to include cloud compute and edge compute platforms.

Akamai Technologies, Inc. (NASDAQ:AKAM) recently reported its first billion-dollar quarter, with total revenue reaching $1.005 billion—a 4% year-over-year increase. Security revenue grew 14% to $519 million, while compute revenue surged by 28% to $167 million. The company projects Q4 revenue between $995 million and $1.020 billion and expects full-year growth of 4% to 5%.

By the end of Q3 2024, 30 hedge funds monitored by Insider Monkey held stakes in Akamai Technologies, Inc. (NASDAQ: AKAM), with a combined value of approximately $486.5 million.