12 Best Edge Computing Stocks to Invest in According to Analysts

4. Nutanix Inc. (NASDAQ:NTNX)

Average Analyst Upside: 23.55%

Number of Hedge Fund Holders: 50 

Nutanix Inc. (NASDAQ:NTNX) is a cloud computing company specializing in software solutions for data centers and hybrid multi-cloud deployments. Its offerings span virtualization, Kubernetes, database-as-a-service, software-defined networking, security, and storage solutions for file, object, and block storage. Recently, Nutanix expanded its AI infrastructure platform with the launch of Nutanix Enterprise AI (NAI), a cloud-native solution deployable at the edge, within company data centers, and on public cloud platforms.

On December 12, UBS initiated coverage on Nutanix Inc. (NASDAQ:NTNX) with a Buy rating and an $81 price target. UBS highlighted Nutanix’s strong market positioning, particularly following the recent disruption caused by a VMware acquisition. The firm projects Nutanix Inc. (NASDAQ:NTNX) to achieve $3.1 billion in annual recurring revenue (ARR) by FY27, exceeding the consensus estimate of $3.0 billion. While public cloud providers continue to claim larger portions of IT budgets, UBS emphasizes the enduring demand for on-premise data center investments, an area where the company thrives by enabling hybrid and multi-cloud environments.

Nutanix Inc. (NASDAQ:NTNX) reported a robust start to fiscal year 2025, exceeding expectations with Q1 revenue of $591 million, marking a 16% year-over-year increase. The company’s ARR also grew 18% to $1.966 billion. Additionally, Nutanix Inc. (NASDAQ:NTNX) launched GPT in a Box 2.0, expanded its AWS partnership, and achieved a 50% year-over-year increase in new customer acquisition, reflecting strategic growth initiatives.

Generation Investment Management Global Equity Strategy stated the following regarding Nutanix, Inc. (NASDAQ:NTNX) in its Q2 2024 investor letter:

“The central idea of HCI is to cut costs and complexity for customers by combining all bits of a data centre into a single offering. To oversimplify slightly, a data centre has three core functions: computing power, data storage and networks to tie them all together. Companies often use different vendors or solutions for each function, raising complexity. This is where Nutanix, Inc. (NASDAQ:NTNX) comes in. Its software blends these technologies together. Customers benefit from a single vendor and a single screen to manage all their digital infrastructure

Getting the world to adopt HCI has been a bumpy ride, for two main reasons. First, the technology is still quite new and, to many organisations, unfamiliar. IT teams, like the rest of us, favour the status quo, making them resistant to change. Second, Nutanix underwent several transitions in short succession without the required planning or rigour. This made it hard for the company to demonstrate its true value to customers….” (Click here to read the full text)