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.
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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.
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.
9. Check Point Software Technologies Ltd. (NASDAQ:CHKP)
Average Analyst Upside: 10.83%
Number of Hedge Fund Holders: 32
Check Point Software Technologies Ltd. (NASDAQ:CHKP) specializes in developing, designing, and marketing enterprise software, offering services such as threat prevention, web security, security management, and software-defined protection. The company has also enhanced its Harmony SASE offering by integrating its proprietary SD-WAN and IoT security capabilities, streamlining the management of secure access service edge solutions.
In Q3 2024, Check Point Software Technologies Ltd. (NASDAQ:CHKP) introduced its AI-powered Quantum Firewall R82 and reported a 7% year-over-year increase in revenue, reaching $635 million. Non-GAAP earnings per share rose 9% to $2.25, while subscription revenue grew by 12%. Additionally, the company’s $186 million acquisition of Cyberint is expected to bolster its security operations capabilities.
Following these results, Barclays revised its outlook on Check Point Software Technologies Ltd. (NASDAQ:CHKP), lowering its price target from $210 to $200 but maintaining an Overweight rating on the stock. Barclays predicts high single-digit growth for Q4 2024, reflecting the inclusion of delayed deals, while setting expectations for approximately 5% growth in FY 2025, noting tougher year-over-year comparisons for Check Point Software Technologies Ltd. (NASDAQ:CHKP).
Ariel Global Fund stated the following regarding Check Point Software Technologies Ltd. (NASDAQ:CHKP) in its Q3 2024 investor letter:
“Israeli based provider of products for information technology security, Check Point Software Technologies Ltd. (NASDAQ:CHKP) also advanced following solid quarterly earnings results. Double-digit billings growth was particularly strong across geographies. Consumers appear to be adopting more pillars of Check Point’s platform and engaging in larger strategic commitments with Infinity and Quantum Force. The company also announced the appointment of new CEO Nadav Zafrir, whose reputation is well established in the cyber community. Meanwhile, Check Point continues to be an astute steward of capital, pursuing organic growth and utilizing surplus cash to return capital to shareholders. We continue to favor the company’s exposure to the fast-growing cloud security market and its industry leading profitability.”
8. Palo Alto Networks Inc. (NASDAQ:PANW)
Average Analyst Upside: 12.48%
Number of Hedge Fund Holders: 64
Palo Alto Networks, Inc. (NASDAQ:PANW) is a prominent American cybersecurity firm specializing in comprehensive security solutions for applications, users, and devices. Its Secure Access Service Edge (SASE) platform, Prisma Access, delivers advanced edge resource protection by integrating Firewall as a Service (FWaaS), threat prevention, DNS security, and data loss prevention (DLP), combined with the robust features expected from a leading network security provider.
The company recently posted strong financial results, reporting a 14% increase in total revenue to $2.14 billion and a 13% rise in earnings per share. Additionally, its Next-Generation Security Annual Recurring Revenue grew by an impressive 40%, surpassing $4.5 billion. However, calculated billings fell 14% year-over-year, missing analyst expectations. Following the earnings report, TD Cowen reaffirmed a Buy rating on the stock and raised its price target from $400 to $420.
Palo Alto Networks, Inc. (NASDAQ:PANW) continues to advance its platformization strategy, with notable achievements including the acquisition of QRadar SaaS, which contributed $74 million to its Next-Generation Security ARR, and the introduction of the Prisma Access Browser, which has already garnered over 115 new customers.
As of Q3 2024, 64 hedge funds tracked by Insider Monkey held stakes in Palo Alto Networks Inc. (NASDAQ:PANW).
7. Oracle Corporation (NYSE:ORCL)
Average Analyst Upside: 12.94%
Number of Hedge Fund Holders: 91
Oracle Corporation (NYSE:ORCL) is a leading provider of software solutions, delivering a broad array of services through its Oracle Cloud Infrastructure (OCI). OCI offers comprehensive cloud deployment capabilities, including servers, storage, networking, and applications. Additionally, Oracle’s Roving Edge Infrastructure brings computing power and storage closer to data sources, enabling real-time data processing and analysis even in remote areas with limited or intermittent internet connectivity.
On December 10, Stifel raised its price target for Oracle Corporation (NYSE:ORCL) to $175 from $155 while maintaining a Hold rating. This adjustment followed Oracle’s second-quarter performance, which met expectations despite unforeseen foreign exchange headwinds impacting its prior guidance. However, Oracle’s stock declined 7% in after-hours trading due to a $2 billion sequential decrease in Remaining Performance Obligations (RPO). Despite this, Oracle’s management remains optimistic, citing strong AI-driven bookings as a driver of future growth.
Oracle Corporation (NYSE:ORCL) also reaffirmed its strategy to double capital expenditures year-over-year to approximately $15 billion and expects its Cloud segment to grow by more than 50% in fiscal year 2025—consistent with the 52% growth reported this quarter.
Madison Sustainable Equity Fund stated the following regarding Oracle Corporation (NYSE:ORCL) in its Q3 2024 investor letter:
“The top contributors in the quarter were NextEra Energy, Oracle Corporation (NYSE:ORCL), Progressive Corporation, Equifax Inc., and United Healthcare. Oracle reported a strong first quarter with accelerating Cloud infrastructure demand. Oracle followed its solid first quarter with an upbeat analyst meeting which highlighted multi-year growth opportunities for the company.”
6. Verizon Communications Inc. (NYSE:VZ)
Average Analyst Upside: 15.48%
Number of Hedge Fund Holders: 57
Verizon Communications Inc. (NYSE:VZ) is a global leader in communication, technology, and entertainment services. Through its Consumer and Business segments, the company offers a wide array of products and services, including wireless and wireline solutions, fixed wireless access (FWA) broadband, IoT offerings, and more.
On December 17, Verizon Communications Inc. (NYSE:VZ) announced a new AI-powered solution developed in collaboration with Nvidia Corp. This innovation enables a variety of AI applications to operate seamlessly over Verizon’s secure 5G private network with private Mobile Edge Compute (MEC). The plug-and-play AI-powered private 5G platform is designed to support third-party developers in driving innovation while remaining adaptable to future advancements in AI and connectivity.
That same day, Raymond James reaffirmed its positive outlook on Verizon Communications Inc. (NYSE:VZ), maintaining an Outperform rating with a $48.00 price target. The firm highlighted Verizon’s strong long-term fundamentals, consistent performance, and attractive dividend yields as key factors for its appeal. For the fourth quarter, Raymond James forecasts conservative postpaid phone net additions of 350,000 in the consumer segment. Meanwhile, business growth expectations are slightly lower due to fewer selling days, with the forecast holding steady at 126,000 net additions.
Third Point Management stated the following regarding Verizon Communications Inc. (NYSE:VZ) in its Q3 2024 investor letter:
“While some economic activity has been showing signs of slowing, the defensive composition of the current high yield market with a high mix of higher quality credit and short duration has let the rates tailwind overwhelm such concerns. The lowest quality sectors of the market have performed best, fueled by both soft/no landing expectations, as well as two positive events in the beleaguered telecom space. Telecom/cable have been poor performers year to date due to overhang from the growth of FWA (aka “wireless cable”) and increased fiber building, however the sector re-rated materially on two deals. Second, Verizon Communications Inc. (NYSE:VZ) announced a deal to acquire Frontier Communications (FYBR), a transaction which the fund benefited from by virtue of its investment in FYBR debt. This transaction, aimed at increasing’s VZ fiber footprint, has led to broad revaluation of fiber retail networks that we think is appropriate. While we continue to expect to see FWA rapidly erode non-upgraded cable and especially copper’s share of the low-end broadband market, the VZ deal underscores the value of the higher end footprint.”
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.
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)
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.”
2. NVIDIA Corporation (NASDAQ:NVDA)
Average Analyst Upside: 24.36%
Number of Hedge Fund Holders: 193
NVIDIA Corporation (NASDAQ:NVDA), a leading innovator in the semiconductor industry, has established itself as a key player in the edge computing landscape. Its edge computing solutions harness the power of NVIDIA’s GPUs and AI capabilities to tackle the unique challenges and opportunities of processing data at the network’s edge. NVIDIA’s EGX Edge Computing Platform empowers organizations to deploy, manage, and scale edge computing solutions across distributed infrastructures. This platform combines a unified software stack with hardware infrastructure that can be implemented across various edge devices.
Citi recently reaffirmed its positive outlook on NVIDIA Corporation (NASDAQ:NVDA), maintaining a Buy rating and a $175 price target. The firm emphasized the strategic advantage of NVIDIA’s GPUs, particularly their software reprogrammability through CUDA, which enables adaptability to diverse workloads. Citi also noted supply chain developments, predicting that NVIDIA’s allocation of CoWoS foundry capacity will rise to 60% in 2025, up from 56% in 2024, further bolstering its growth trajectory.
In Q3 2024, NVIDIA Corporation (NASDAQ:NVDA) reported impressive revenue of $35.1 billion, reflecting a 17% sequential increase and a remarkable 94% year-over-year growth. This surge was primarily driven by robust AI hardware demand, with the company’s data center services and Blackwell AI chip playing a pivotal role. These developments have heightened expectations for continued growth in the coming year.
Ithaka US Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is the market leader in visual computing through the production of high-performance graphics processing units (GPUs). The company targets four large and growing markets: Gaming, Professional Visualization, Data Center, and Automotive. NVIDIA’s products have the potential to lead and disrupt some of the most exciting areas of computing, including: data center acceleration, artifi cial intelligence (AI), machine learning, and autonomous driving. The reason for the stock’s appreciation in the quarter was twofold: First, the stock benefi ted from tremendous excitement surrounding the further development of generative AI and the likelihood this would necessitate the purchase of a large number of Nvidia’s products far into the future; Second, Nvidia posted another strong beat[1]and-raise quarter, where the company upped its F2Q25 revenue guidance above Street estimates, showcasing its dominant position in the buildout of today’s accelerated computing infrastructure.”
1. Intel Corporation (NASDAQ:INTC)
Average Analyst Upside: 44.21%
Number of Hedge Fund Holders: 68
Intel Corporation (NASDAQ:INTC), headquartered in Santa Clara, California, is a leading global semiconductor manufacturer known for its significant role in advancing the x86 series of instruction sets, widely used in personal computers. Beyond its core business, Intel Corporation (NASDAQ:INTC) offers edge computing solutions, including the Intel Smart Edge Open, an open-source Mobile Edge Computing (MEC) toolkit designed to enable efficient and high-performance deployment of edge platforms for applications and network functions.
On December 3, Evercore ISI reiterated its In Line rating for Intel Corporation (NASDAQ:INTC), maintaining a price target of $26 following the announcement of CEO Pat Gelsinger’s retirement. The firm acknowledged progress made under Gelsinger’s leadership in narrowing the technology gap with competitors like TSMC. However, Evercore ISI highlighted ongoing challenges, including competition from AMD, NVIDIA, and Intel’s own customers developing custom CPUs and AI processors. Additionally, the shift in the data center market from x86 architecture to GPUs and ARM at the edge presents further hurdles for Intel Corporation (NASDAQ:INTC).
Despite these challenges, Intel’s financial performance in Q3 showed resilience, with $13.3 billion in revenue, reflecting a 4% sequential increase. The company also provided full-year guidance for its Mobileye division, projecting $485 million in revenue. Furthermore, Intel’s programmable chips division, Altera, reported a 14% sequential revenue growth, reaching $412 million for the quarter ending in September.
While we acknowledge the potential of INTC, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than INTC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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