5 Best Edge Computing Stocks To Buy

In this article, we discuss 5 best edge computing stocks to buy. If you want to read our discussion on the edge computing market, head over to Edge Computing Market Size and Best Stocks To Buy. 

5. Intel Corporation (NASDAQ:INTC)

Number of Hedge Fund Holders: 86

Intel Corporation (NASDAQ:INTC) is a global technology company engaged in designing, developing, manufacturing, and selling computing and related products and services. The company offers a diverse product portfolio, including central processing units, chipsets, system-on-chips, mobile and desktop processors, graphics processing units, accelerators, memory, storage, connectivity, and networking solutions. Intel Corporation (NASDAQ:INTC) is one of the top edge computing market leaders to consider. 

On January 25, Intel Corporation (NASDAQ:INTC) reported a Q4 non-GAAP EPS of $0.54 and a revenue of $15.4 billion, exceeding Wall Street forecasts by $0.09 and $230 million, respectively. 

According to Insider Monkey’s fourth quarter database, 86 hedge funds were long Intel Corporation (NASDAQ:INTC), compared to 70 funds in the preceding quarter. William B. Gray’s Orbis Investment Management is the biggest stakeholder of the company, with 16 million shares worth $801.35 million. 

Upslope Capital Management stated the following regarding Intel Corporation (NASDAQ:INTC) in its fourth quarter 2023 investor letter:

“Intel Corporation (NASDAQ:INTC) – New Long: This is not a traditional long for Upslope in any sense. Intel is outside of the box in terms of typical sector and market cap focus, and the position is really a portfolio hedge (and structured as such). The thesis is very simple: Intel is uniquely positioned to benefit in two important scenarios, both of which require “protection” for Upslope’s portfolio: a continued melt-up in technology stocks and/or rising tensions over Taiwan. Combined with expectations and sentiment around Intel that were incredibly low, this nudged me to add exposure via long-dated INTC call options. While still material in terms of delta-adjusted exposure, the position has been reduced repeatedly and is much more modest today.”

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 166

In May 2022, Alphabet Inc. (NASDAQ:GOOG) acquired MobiledgeX, a company backed by Deutsche Telekom, with plans to open source its code and integrate it into Google Cloud. MobiledgeX, founded in 2018, specializes in federated telco edge cloud solutions adhering to GSMA standards. Moreover, Google Distributed Cloud (GDC), particularly the GDC Edge component, is integral to the success of Anthos, as it caters to both telecom operators and enterprise customers. GDC Edge is designed to position Anthos as the foundation for 5G infrastructure and modern workloads like AI and analytics. Alphabet Inc. (NASDAQ:GOOG) is one of the best edge computing market leaders. 

On January 30, Alphabet Inc. (NASDAQ:GOOG) reported a Q4 GAAP EPS of $1.64 and a revenue of $86.31 billion, outperforming Wall Street estimates by $0.04 and $1.04 billion, respectively. 

According to Insider Monkey’s fourth quarter database, 166 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 163 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 45.2 million shares worth $6.3 billion. 

The FPA Crescent Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its fourth quarter 2023 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) continued going from strength to strength during 2023 despite concerns that competition may infringe on the company’s dominant position in Search. Thus far, Alphabet has continued to hold its own, and we look forward to seeing how the company incorporates further AI developments across the Alphabet ecosystem. Lastly, we are hopeful that the impending arrival of a new CFO will bring a renewed focus on efficiency – an area where we believe Alphabet has ample room for improvement.”

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173

NVIDIA Corporation (NASDAQ:NVDA) is one of the best edge computing market leaders. NVIDIA offers Enterprise Edge Computing, Industrial Edge AI, and Autonomous Machines and Embedded Edge solutions. On February 21, the company reported a Q4 non-GAAP EPS of $5.16 and a revenue of $22.1 billion, outperforming Wall Street estimates by $0.52 and $1.55 billion, respectively. Revenue for the quarter increased 265.3% on a year-over-year basis. 

According to Insider Monkey’s fourth quarter database, 173 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA), compared to 180 funds in the last quarter. Rajiv Jain’s GQG Partners is a prominent stakeholder of the company, with nearly 14 million shares worth $6.8 billion. 

SaltLight Capital stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“We were fortunate to have some exposure to some of the ‘Magnificent Seven’ – Amazon, NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms and Google (although in aggregate, we still hold a smaller weighting than the S&P 500).

While we are cautious in AI infrastructure, we do think there are mispriced opportunities in areas of application software where AI can be infused to make a step change improvement. Posted in our office is this chart that ASML provides at each of its investor days. This chart is a little outdated from 2021, but we think illustrates how value (in operating profit) was distributed across semiconductors, hardware, and then software & services. It’s very clear that most of the economic value in the past has accrued to the software services (in gray) built on the backs of highly technical companies run by extremely smart people.

Why is this? We think it is due to a combination of distribution and network effects. Our working hypothesis right now is that this will likely remain a similar outcome in the AI epoch. One outlier right now is Nvidia which is capturing 80% margins..” (Click here to read the full text)

2. Amazon.com, Inc. (NASDAQ:AMZN) 

Number of Hedge Fund Holders: 293

Amazon.com, Inc. (NASDAQ:AMZN)’s AWS edge services provide data processing, analysis, and storage in proximity to endpoints, enabling the deployment of APIs and tools outside AWS data centers. Amazon is one of the top edge computing market leaders. On February 26, AWS announced that it is set to invest $5 billion in cloud infrastructure projects in Mexico over the next 15 years. This initiative, part of a long-term commitment to Latin American markets, will establish the new AWS Mexico Region, providing enhanced access to advanced and secure cloud technologies for customers. The investment aligns with AWS’s commitment to offering advanced technologies like artificial intelligence and machine learning to customers. 

According to Insider Monkey’s fourth quarter database, 293 hedge funds were long Amazon.com, Inc. (NASDAQ:AMZN), compared to 286 funds in the last quarter. Ken Fisher’s Fisher Asset Management is the largest stakeholder of the company, with 42.2 million shares worth $6.4 billion. 

Polen Global Growth Strategy stated the following regarding Amazon.com, Inc. (NASDAQ:AMZN) in its fourth quarter 2023 investor letter:

“Amazon.com, Inc. (NASDAQ:AMZN), which saw significant price appreciation throughout much of 2023, saw its share price increase materially in Q4 following the company’s Q3 2023 earnings report. We have yet to see the long-awaited re-acceleration in AWS (Amazon Web Services) revenue growth. However, in our estimation, the segment’s growth has likely bottomed, and we could see accelerating growth in 2024. Further, Amazon’s e-commerce business has gradually re-accelerated from 2022’s levels and, perhaps most importantly, the company’s margins and free cash flow have rebounded materially from last year. This rebound in margins and free cash flow at Amazon has been a key component of our long-term thesis for the business, and we expect the improvement in these metrics to continue into 2024 and beyond (though perhaps not linearly) as the company continues to optimize costs and capital expenditures. Our position in Amazon reflects our positive long-term expectations of the business, and it is currently our largest absolute weight in the Portfolio.”

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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