12 Best Edge Computing Stocks to Invest in According to Analysts

3. Dell Technologies Inc. (NYSE:DELL)

Average Analyst Upside: 24.14%

Number of Hedge Fund Holders: 60 

Dell Technologies Inc. (NYSE:DELL) designs, develops, manufactures, and supports a broad spectrum of IT infrastructure products, including laptops, desktops, mobile devices, workstations, storage solutions, software, and cloud services. Recognizing the transformative power of edge computing, Dell introduced its NativeEdge edge software platform, which simplifies, secures, and optimizes edge deployments across diverse industries.

In November, Mizuho Securities revised its price target for Dell Technologies Inc. (NYSE:DELL) to $150 from $155 while maintaining an Outperform rating. The adjustment followed Dell’s earnings report for the October quarter, which posted revenues of $24.4 billion, slightly below the $24.6 billion consensus estimate. For the January quarter, Dell Technologies Inc. (NYSE:DELL) guided revenue to remain flat at $24.5 billion, lower than the $25.4 billion forecasted by analysts. A key highlight was Dell’s AI server revenue, with orders reaching $3.6 billion—up 13% sequentially—and a growing backlog of $4.5 billion, reflecting an 18% increase. Additionally, the pipeline for AI server orders surged over 50% quarter-over-quarter, underscoring strong demand in this segment.

Carillon Scout Mid Cap Fund stated the following regarding Dell Technologies Inc. (NYSE:DELL) in its Q2 2024 investor letter:

“Dell Technologies Inc. (NYSE:DELL) was a top contributor despite reporting disappointing first-quarter earnings results, because investors looked through the near-term disappointment and expected strong growth from AI-related servers and personal computers. We expect Dell to participate in the growth of artificial intelligence hardware, especially as enterprises invest more aggressively. We like the company’s depth and breadth of products and services, as well as its focus on keeping costs low.”