In this article, we will discuss the 5 best edge computing stocks to buy now. If you want to explore similar stocks, you can also look at the 11 Best Edge Computing Stocks to Buy Now.
5. Intel Corporation (NASDAQ:INTC)
Number of Hedge Fund Holders: 71
Intel Corporation (NASDAQ:INTC) is an American multinational corporation and technology company headquartered in Santa Clara, California. It holds a prominent position as one of the world’s leading semiconductor chip manufacturers in terms of revenue and a significant contributor to the advancement of the x86 series of instruction sets, which are widely employed in personal computers. In addition, the company offers edge computing solutions. The Intel Smart Edge Open is an open-source Mobile Edge Computing (MEC) toolkit designed to facilitate the efficient and high-performing deployment of edge platforms for applications and network functions. It empowers seamless onboarding and management, offering cloud-like flexibility across various network types.
Intel Corporation (NASDAQ:INTC) experienced a remarkable 9% surge in its stock price on October 27, fueled by the release of the company’s third-quarter earnings report, which surpassed expectations. This impressive performance can be attributed to the success of Intel’s foundry business, heightened interest in artificial intelligence, and positive signs of a PC market recovery. Intel Foundry Services (IFS), responsible for chip manufacturing for corporate and government clients, achieved outstanding results with $311 million in revenue, marking a significant 299% growth compared to the same period in the previous year.
As of the end of Q2 2023, 71 hedge funds tracked by Insider Monkey reported having stakes in Intel Corporation (NASDAQ:INTC), up from 68 in the previous quarter. The consolidated value of these stakes is over $2.55 billion. With over 11 million shares, Millennium Management was the company’s leading stakeholder in Q2.
ClearBridge Investments mentioned INTC in its Q3 2023 investor letter. Here is what the firm has to say:
“We also added to our position in Intel Corporation (NASDAQ:INTC) to take advantage of signs that it continues to make progress on its goal of regaining technology leadership. Intel appears to be executing its technology/product roadmap; the company is on track to ramp up PC and server products over the next 12 months on advanced manufacturing nodes that we believe will be more competitive with chief rival Advanced Micro Devices. We also see green shoots in the PC and server markets, with an increasing possibility of a cyclical recovery in both end markets in 2024.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 152
Alphabet Inc. (NASDAQ:GOOG) is a major player in the technology industry. At its core is Google, a search engine that processes billions of queries daily. The company also owns various video streaming and productivity platforms, with YouTube being one of its notable assets. Furthermore, Alphabet Inc. (NASDAQ:GOOG) is involved in the retail of electronic devices, including smartphones, ultra-thin notebooks, and speakers. In terms of edge computing, the GDC Edge Appliance is a Google Cloud-managed, secure, high-performance appliance designed for edge locations. It offers local storage, machine learning inference, data transformation, and export capabilities. Alphabet Inc. (NASDAQ:GOOG) states that the Edge Appliance is aimed at enterprises operating in sectors such as manufacturing, supply chain, healthcare, and automotive, where there are demands for low-latency and high throughput solutions.
As the close of the second quarter of 2023, 152 hedge funds had stakes in Alphabet Inc. (NASDAQ:GOOG). The most significant stakeholder of the company was Natixis Global Asset Management’s Harris Associates which owns a $3.21 billion stake in the company.
Ensemble Capital Management made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (+9.32%): Separate from all the discussion of artificial intelligence, Google’s core Search business, having experienced a significant slowdown in 2022, now shows clear signs of reacceleration. While the future of AI and its impact on Google is still subject to a healthy debate, the company seems to have put to bed investor concerns about any rapid negative impact. With Search revenue growth accelerating, and the company rolling out lots of new AI tools, the investor panic from the beginning of the year about AI immediately hurting Google appears to have been overblown.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 175
Nvidia Corporation (NASDAQ:NVDA) is an American multinational technology company that is incorporated in Delaware and headquartered in Santa Clara, California. NVIDIA Corporation (NASDAQ:NVDA) is recognized for its expertise in developing integrated circuits, which find applications in a wide range of devices, from electronic game consoles to personal computers (PCs). Notably, the NVIDIA EGX platform extends the capabilities of accelerated computing from data center to edge locations, offering a variety of optimized hardware components, along with user-friendly deployment, applications, and management software.
Insider Monkey took a look at hedge fund portfolios for NVIDIA Corporation (NASDAQ:NVDA)’s Q2 2023 investments and found out that 175 had a stake in NVIDIA Corporation (NASDAQ:NVDA). Citadel Investment Group was its biggest stakeholder which has roughly 21.4 million stakes for about $9 billion of NVIDIA Corporation (NASDAQ:NVDA).
Baron Opportunity Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading semiconductor company that sells chips and software for accelerated computing and gaming. Shares have nearly tripled year-to-date, as the company continues reporting unprecedented growth because of the acceleration in demand for its data center chips. After reporting revenue of $7 billion in the first quarter and providing guidance of $11 billion for the second quarter, NVIDIA reported second quarter revenue of $13.5 billion and guided for another step up in the third quarter to $16 billion, with its CFO declaring “[d]emand for our Data Center platform for AI is tremendous and broad-based across industries and customers.” We are at the tipping point of a new era of computing with NVIDIA at its epicenter. This is how CEO and founder Jensen Huang put it (during the company’s August 23 earnings call):
“[T]he easiest way to think about the demand is the world is transitioning from general purpose computing to accelerated computing…[W]hat you’re seeing companies do now is recognizing this…tipping point…recognizing the beginning of this transition, and diverting their capital investment to accelerated computing and generative AI…This isn’t a singular application that is driving the demand, but this is a new computing platform…a new computing transitioning that’s happening…A new computing era has begun. The simultaneously going through two platform transitions, accelerated computing and generative AI.””
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 278
Amazon.com, Inc. (NASDAQ:AMZN) is a leading American multinational technology company with a diverse range of business interests. These include e-commerce, cloud computing through Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence. The company’s cloud service division offers edge computing services as well. For instance, AWS edge services facilitate data processing, analysis, and storage in proximity to end-user devices, enabling the deployment of APIs and tools at locations outside of AWS data centers.
On November 2, HSBC initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with a “Buy” rating and a price target of $160. The analysts at the firm highlight that Amazon’s potential in the cloud computing space exceeds the strong customer loyalty in e-commerce. HSBC also emphasizes that Amazon Web Services (AWS) continues to be one of the most compelling narratives in the technology sector. In addition, the firm asserts that any short-term growth challenges do not undermine the long-term growth prospects of the company.
Based on data from Insider Monkey’s database, a total of 278 elite hedge funds held positions in Amazon.com, Inc. (NASDAQ: AMZN) stock, with a collective stake value of $34.9 billion. This represents an increase from the 243 hedge funds that collectively held a stake valued at $25.7 billion previously. Notably, Chicago-based Harris Associates emerged as the most significant stakeholder in the company, with 15.6 million shares valued at $2.036 billion.
White Falcon Capital Management mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its third quarter 2023 investor letter. Here is what it said:
“There are comparable narratives involving NU Holdings, Amazon.com, Inc. (NASDAQ:AMZN), and Teck Resources, to name a few holdings from the White Falcon portfolio. Amazon constructed its logistics network and cloud computing infrastructure using yesterday’s currency, but it is poised to capitalize on this network with the inflated dollars of tomorrow. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 300
Microsoft Corporation (NASDAQ:MSFT) is an American multinational technology company headquartered in Redmond, Washington. The company is most renowned for its software products, including the Windows line of operating systems, the Microsoft 365 suite of productivity applications, and the Edge web browser. When it comes to the realm of edge computing, Microsoft Azure has rapidly gained prominence by actively supporting edge initiatives in both hardware and software.
In a recent announcement, Microsoft Corporation (NASDAQ:MSFT) revealed its financial results for the first quarter of the 2024 fiscal year. The tech giant posted impressive revenue of $56.5 billion, accompanied by a net income of $22.3 billion in Q1. These figures represent substantial growth, with revenue increasing by 13% and net income surging by 27%. Although the Devices segment faced some challenges during this quarter, there was a modest recovery observed in the Windows division. Notably, Microsoft Corporation (NASDAQ:MSFT)’s cloud services and Office suite enjoyed significant growth, with the company’s Cloud revenue reaching $31.8 billion, demonstrating a 24% year-over-year growth.
Microsoft Corporation (NASDAQ:MSFT) also distributed a quarterly dividend of $0.75 per share and recently raised this dividend by 10% in September of the current year. This marks the 17th consecutive year of dividend growth for the company. As of November 4, MSFT stock offers a dividend yield of 0.85%.
According to Insider Monkey’s Q2 2023 database, Microsoft Corporation (NASDAQ: MSFT) was the most popular stock among hedge funds, with 300 funds holding stakes in the company, collectively valued at nearly $70 billion.
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