5 Best Edge Computing Stocks To Buy

1. Microsoft Corporation (NASDAQ:MSFT) 

Number of Hedge Fund Holders: 302

Microsoft Corporation (NASDAQ:MSFT) ranks 1st on our list of the edge computing market leaders. Microsoft’s Azure IoT Edge enables the deployment and management of containers from IoT Hub, facilitating integration with Azure IoT solutions at the edge. 

On February 28, Barclays suggested that Microsoft Corporation (NASDAQ:MSFT)’s investments in advertising could present a $50 billion opportunity, especially considering the ongoing antitrust issues surrounding Google’s dominance in search. Microsoft’s revamped search offering, incorporating generative AI features, is seen as a competitive move. The company’s acquisitions, including LinkedIn, PromoteIQ, and Xandr, position it to capitalize on advertising, potentially yielding a $30 billion organic revenue opportunity and an additional $20 billion windfall. Barclays maintained an Overweight rating on Microsoft stock with a price target of $475.

According to Insider Monkey’s fourth quarter database, 302 hedge funds were long Microsoft Corporation (NASDAQ:MSFT), compared to 306 funds in the last quarter. Bill & Melinda Gates Foundation Trust is the biggest stakeholder of the company, with 38.2 million shares worth $14.3 billion. 

RiverPark Large Growth Fund stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its fourth quarter 2023 investor letter:

“Microsoft Corporation (NASDAQ:MSFT): MSFT was a top contributor in the quarter following strong FY1Q24 earnings in late October. In that earnings report, MSFT delivered better-than-expected revenue (+13%) and earnings (+27%), with growth in both accelerating from the prior quarter. All three major segments grew revenue faster than expected, highlighted by 28% constant currency growth in Azure, the company’s cloud offering. This marked the first quarter-over-quarter acceleration for Azure in six quarters. Operating margins (48%) were 400 basis points better than expected and earnings came in 13% ahead of expectations.

Cloud-based services have become the company’s largest revenue and earnings producer. The company’s Azure platform alone has the potential to grow to more than $100 billion in annual revenue over the next decade. Overall, we believe that the company will continue to deliver double-digit revenue and EPS growth and generate an enormous amount of free cash flow to both return to shareholders and use for acquisitions.”

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