In this article, we will take a look at the 12 Best Edge Computing Stocks to Invest in According to Analysts.

Tech stocks have definitely grabbed the spotlight in the tech world, especially with the rise of generative AI. But there’s more to the sector that could be worth investors’ attention. Edge computing, for example, is another area within tech that’s primed for significant growth. Also known as Mobile Edge Computing (MEC) or Multi-Access Edge Computing, edge computing aims to bring computing power closer to where data is generated instead of relying solely on centralized cloud systems. Sometimes called the “Third Act of the Internet” by the Linux Foundation, edge computing changes the game by moving data storage and processing closer to local network points. This shift is a major step in how we handle and interact with information.

A new forecast from the IDC, global spending on edge computing is projected to hit $228 billion in 2024, reflecting a 14% increase from 2023. This figure covers combined spending by enterprises and service providers on hardware, software, professional services, and provisioned services for edge solutions. The forecast predicts continued strong growth through 2028, with spending expected to approach $378 billion, driven by a robust double-digit compound annual growth rate (CAGR).

This growth is driven by the increasing demand for localized network infrastructure and computing power, fueled by the rise of the Internet of Things (IoT)—a network of connected devices. As more data is generated at the endpoints, the traditional network structure faces more strain. The rollout of 5G, which offers higher bandwidth and the ability to support more connected devices, is boosting IoT and driving the need for edge computing. At the same time, AI-optimized processors are providing the computing power necessary to expand the use of edge systems. The automotive industry is a great example of how edge computing and AI are driving rapid advancements. As cars increasingly adopt self-driving features, these technologies have become crucial for making real-time decisions and responses.

According to Fortune Business Insights, the global edge computing market, valued at $10.11 billion in 2023, is expected to grow from $13.66 billion in 2024 to a staggering $181.96 billion by 2032, reflecting a CAGR of 38.2%. This rapid expansion is driven by the increasing adoption of edge devices, such as mobile point-of-sale kiosks and smart cameras, as well as computational infrastructure enabling real-time data analysis at the source. Similarly, PwC had predicted that the global market for edge data centers will nearly triple, rising from $4 billion in 2017 to $13.5 billion in 2024. This growth is fueled by the ability of localized data centers to reduce latency, manage intermittent connections, and deliver storage and computational power closer to end-users.

Our Methodology

To create our list of the top edge computing stocks to invest in according to analysts, we reviewed various stock screeners and ETFs, selecting companies based on their upside potential as of December 17. The stocks are ranked by their average upside potential, from lowest to highest, according to price targets. We also included data on the number of hedge funds holding stakes in these stocks, based on Insider Monkey’s Q3 hedge fund data.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

12. Accenture plc (NYSE:ACN)

Average Analyst Upside: 7.05%

Number of Hedge Fund Holders: 60

Accenture plc (NYSE:ACN), an Ireland-based information technology firm, specializes in helping businesses digitally transform their operations by offering services across strategy, consulting, digital, and technology. Its “Accenture One Edge Platform” provides a unified solution for managing a Cloud-Edge-IoT computing continuum, enabling centralized control of diverse systems.

Piper Sandler recently raised its price target for Accenture’s shares from $395 to $422, maintaining an Overweight rating. The firm’s confidence is driven by expectations that Accenture’s first-quarter results will exceed consensus estimates, alongside an improved macroeconomic outlook compared to three months ago.

Accenture plc (NYSE:ACN) continues to expand its capabilities through strategic acquisitions and contracts, having announced plans to acquire AOX, a German automotive embedded software provider, and Allitix, a consulting firm specializing in Anaplan business planning solutions. These acquisitions are expected to bolster Accenture’s automotive sector expertise and support annual revenue growth.

Additionally, Accenture Federal Services, a subsidiary of Accenture plc (NYSE:ACN), secured a $1.6 billion contract from the U.S. Air Force to enhance its multi-cloud Cloud One environment. The company also launched the ‘Federal AI Solution Factory’ in collaboration with Google Public Sector, aimed at accelerating the development of AI solutions for federal agencies.

11. Cisco Systems, Inc. (NASDAQ:CSCO)

Average Analyst Upside: 8.09%

Number of Hedge Fund Holders: 60

Cisco Systems, Inc. (NASDAQ:CSCO) offers enterprise network security, software development, data collaboration, and related services. Its Security Service Edge (SSE) integrates multiple security functions into a unified cloud service, providing comprehensive protection for users and infrastructure against threats.

Back in November, Cisco Systems, Inc. (NASDAQ:CSCO) announced a strategic partnership with AppOmni, combining its SSE technology suite with AppOmni’s Zero Trust Posture Management (ZTPM) solution. This collaboration enables zero trust principles at the application layer for Security-as-a-Service (SaaS) applications. The integrated solution enhances end-to-end security—from endpoints to applications—while offering improved visibility and monitoring of configurations, user behaviors, and complex SaaS environments.

In its Q1 FY2025 results, Cisco Systems, Inc. (NASDAQ:CSCO) reported strong performance, with revenues reaching $13.8 billion and non-GAAP earnings per share (EPS) of $0.91, both exceeding expectations. The company’s focus on artificial intelligence infrastructure and security solutions has driven significant demand, with security orders more than doubling, supported by the successful integration of Splunk. Looking ahead, Cisco Systems, Inc. (NASDAQ:CSCO) projects FY2025 revenue between $55.3 billion and $56.3 billion, with non-GAAP EPS expected to range between $3.60 and $3.66.