5 Best Edge Computing Stocks to Buy

In this article, we will look at the 5 best edge computing stocks to buy. If you want to read our detailed analysis of the edge computing industry and explore similar stocks, you can go directly to Edge Computing Market Leaders and Best Stocks to Buy.

5. Oracle Corporation (NASDAQ:ORCL)

Number of Hedge Fund Holders: 67

Oracle Corporation (NASDAQ:ORCL) is a leading provider of enterprise cloud computing solutions and a major player in the edge computing business. The company’s comprehensive edge computing platform helps organizations to rapidly deploy, manage, and scale their applications and services with low latency and high reliability. Oracle Corporation (NASDAQ:ORCL) is ranked high among the best edge computing stocks to buy now and, as of December 15, the stock has gained 16.34% over the past six months.

Wall Street sees material upside to Oracle Corporation (NASDAQ:ORCL). This December, BMO Capital analyst Keith Bachman raised his price target on Oracle Corporation (NASDAQ:ORCL) to $95 from $90 and maintained a Market Perform rating on the shares.

On December 12, Oracle Corporation (NASDAQ:ORCL) posted strong earnings for the second quarter of fiscal 2023. The company reported an EPS of $1.21 and outperformed consensus by $0.04. Oracle Corporation (NASDAQ:ORCL) generated a revenue of $12.28 billion, up 18.48% year over year, and beat revenue estimates by $257.73 million.

At the end of Q3 2022, 67 hedge funds were bullish on Oracle Corporation (NASDAQ:ORCL) and disclosed positions worth $3.27 billion in the company. Of those, First Eagle Investment Management is the largest investor in the company and has a position worth $1.58 billion.

Here is what First Eagle Investments had to say about Oracle Corporation (NASDAQ:ORCL) in its second-quarter 2022 investor letter:

“Oracle is one of the world’s largest independent enterprise software companies and has been reinventing itself for the cloud-computing environment, a transition pursued primarily through investments in organic research and design and smallish, well-priced acquisitions. That said, Oracle in June closed its largest-ever deal with the acquisition of Cerner, a designer of software to store and analyze medical records and other healthcare data.

Oracle took on additional debt to finance this all-cash acquisition and as a result plans to moderate its stock-buyback program to focus on debt reduction. Despite the weak quarter for the stock, Oracle’s operations remain strong; it reported better- than-expected results for its most recent quarter and issued upbeat guidance for the coming fiscal year.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 89

NVIDIA Corporation (NASDAQ:NVDA) is at the forefront of the edge computing market. The company is a leading provider of edge computing hardware and chips. The company’s edge computing solutions leverage its graphic processing units (GPUs) to enable organizations to process large amounts of data quickly and efficiently. The NVIDIA EGX platform is designed to bring AI, machine learning, and other advanced analytics to the edge. This platform can be used in a wide range of applications, including autonomous vehicles, factory automation, and smart cities. NVIDIA Corporation (NASDAQ:NVDA) is a leader in the space and is expected to retain its position as the industry grows further. The stock is one of the best edge computing stocks to buy now.

On December 14, Deutsche Bank analyst Ross Seymore raised his price target on NVIDIA Corporation (NASDAQ:NVDA) to $170 from $150 and maintained a Hold rating on the shares.

At the close of Q3 2022, 89 hedge funds were bullish on NVIDIA Corporation (NASDAQ:NVDA). The funds disclosed positions worth $4.29 billion in the company, up from $3.31 billion in the previous quarter with 84 positions. As of September 30, Fisher Asset Management is the top investor in the company and has disclosed a position worth $1.46 billion.

Here is what ClearBridge Investments had to say about NVIDIA Corporation (NASDAQ:NVDA) in its third-quarter 2022 investor letter:

“Likewise, graphics chip maker NVIDIA Corporation (NASDAQ:NVDA) (-19.9%) has struggled through the post-COVID-19 recovery but maintains dominant positions in key secular growth markets of AI and gaming. The company has significantly underperformed the index and semiconductor peers recently due to a gaming inventory correction, a decline in aggregate cryptocurrency demand and reduction in crypto mining intensity as well as concerns around the sustainability of data center sales.

We tactically trimmed our position early in 2022 due to concerns around these cycle dynamics but remain confident in the company’s long-term prospects.”

3. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 156

Alphabet Inc. (NASDAQ:GOOG) is an industry-leader in edge computing, allowing businesses to leverage the power of cloud computing while maintaining control of their data. The company is investing heavily in edge computing solutions, such as its Google Distributed Cloud Platform, to help businesses reduce latency and increase efficiency. Alphabet Inc. (NASDAQ:GOOG) is placed third on our list of the best edge computing stocks to buy now.

As of August 3, Tigress Financial analyst Ivan Feinseth has a $186 price target and Strong Buy rating on Alphabet Inc. (NASDAQ:GOOG).

At the end of Q3 2022, Alphabet Inc. (NASDAQ:GOOG) was a part of 156 investors’ portfolios that held collective stakes worth $19.31 billion. Of those, TCI Fund Management was the largest stockholder in the company and held a position worth $5.04 billion.

Here is what Stewart Asset Management had to say about Alphabet Inc. (NASDAQ:GOOG) in its third-quarter 2022 investor letter:

“We invest in businesses with strong, resilient earnings growth which are less cyclical. In the pandemic recession of 2020, the aggregate earnings of the portfolios we manage did not decline year-over-year, and in fact grew, albeit modestly. Looking at the Great Recession which began at year-end 2007 and lasted to mid-year 2009 is helpful too. Our four largest current holdings in the portfolio weathered that period well. Alphabet (NASDAQ:GOOG), then called Google, reported earnings that doubled from 2007 to 2010.”

2. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 269

Amazon.com, Inc. (NASDAQ:AMZN) has a large and growing cloud infrastructure, which is an essential resource for edge computing applications. Amazon Web Services (AWS) is a widely adopted cloud platform, and it provides a variety of services that are essential for edge computing, including compute, storage, networking, and analytics. Amazon.com, Inc. (NASDAQ:AMZN) has a strong foundation for success in the edge computing market and is one of the best edge computing stocks to buy now.

On December 8, JMP Securities analyst Nicholas Jones maintained an Outperform rating and his $140 price target on Amazon.com, Inc. (NASDAQ:AMZN).

At the end of the third quarter of 2022, 269 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN) and held stakes worth $34.6 billion in the company. This is compared to 252 positions in the previous quarter with stakes worth $30 billion. The hedge fund sentiment for the stock is positive. As of September 30, Ken Fisher’s Fisher Asset Management is the largest investor in Amazon.com, Inc. (NASDAQ:AMZN) and has disclosed a position worth $5.63 billion.

Here is what L1 Capital International had to say about Amazon.com, Inc. (NASDAQ:AMZN) in its third-quarter 2022 investor letter:

“Quarterly results (mostly reported in late July and early August) were generally in line with our expectations. Solid company execution was subsequently swamped by increases in interest rates and hawkish Federal Reserve commentary. During the quarter, only one company (Amazon.com) made a positive contribution of more than 0.5% in Australian dollars. Amazon.com, Inc.(NASDAQ:AMZN) was the largest negative contributor in the June 2022 quarter, with the share price recovering modestly but it is still well below our view of fair value. No company detracted more than 0.5% from the Fund’s performance in Australian dollars, although the depreciation of the Australian dollar obfuscates some meaningful share price falls in U.S. dollars

We did not participate in the ‘unprofitable tech bubble’, but our portfolio does have significant exposure to some of the largest, highly profitable and incredibly financially strong technology companies which dominate their markets and have outstanding medium to long term growth prospects – including Alphabet, Amazon, Intuit and Microsoft. The share price of these companies has now fallen to levels we now consider provide very attractive valuations for long term investors.”

1. Microsoft Corporation (NASDAQ:MSFT)

Number of Hedge Fund Holders: 269

Microsoft Corporation (NASDAQ:MSFT) is one of the leading players in the edge computing market, and it has a number of competitive advantages that help it stand out from its competitors. Microsoft Corporation (NASDAQ:MSFT) has a large and diverse portfolio of products and services, from cloud computing and machine learning to artificial intelligence and the Internet of Things (IoT). This gives company a unique advantage in the edge computing market, as it can offer customers a comprehensive solution that covers all their needs. In addition, Microsoft Corporation (NASDAQ:MSFT) has a strong track record of developing and deploying cutting–edge technologies that can help customers get the most out of their edge computing solutions. This includes Azure Edge Zones, which provide customers with secure, low–latency networks that help them optimize their edge computing performance. Microsoft Corporation (NASDAQ:MSFT) is placed high on our list of the best edge computing stocks to buy now.

On November 29, Morgan Stanley analyst Keith Weiss maintained an Overweight rating and his $307 price target on Microsoft Corporation (NASDAQ:MSFT).

At the close of the third quarter of 2022, Microsoft Corporation (NASDAQ:MSFT) was a part of 269 investors’ portfolios that disclosed positions worth $61.17 billion in the company. This is compared to 258 positions in the previous quarter with stakes worth $56 billion. The hedge fund sentiment for the stock is positive. As of September 30, Bill & Melinda Gates Foundation Trust is the top investor in the company and has a position worth $9.14 billion.

Here is what Alger Capital had to say about Microsoft Corporation (NASDAQ:MSFT) in its third-quarter 2022 investor letter:

“Microsoft Corporation (NASDAQ:MSFT) is a positive dynamic change beneficiary of corporate America’s transformative digitization. Microsoft CEO expects technology spending as a percent of gross domestic product (GDP) to jump from about 5% now to 10% in 10 years and that Microsoft will continue to capture market share within the technology sector.

Microsoft’s shares underperformed during the period because the company slightly missed analysts’ estimates. The miss was due to foreign currency headwinds, weakening small business and consumer demand, and decreasing advertising activity. However, Microsoft showed that despite consumer, advertising, and small and medium business weakness; the company’s main business, the digitization of corporate America, continues to grow. We believe the secular forces of cloud adoption (azure and office 365) remain resilient, and the company’s commercial bookings growth attest to the continued demand for digital transformation.”

You can also take a look at 16 Large-Cap Stocks with Insider Buying and 10 Best BDC Stocks To Buy.