Edge Computing Market Size and 7 Best Stocks To Buy

4. Alphabet Inc. (NASDAQ:GOOG)

Number of Hedge Fund Holders: 166

In the realm of edge computing, Alphabet Inc. (NASDAQ:GOOG)’s Google Distributed Cloud (GDC) Edge component is a secure, high-performance device managed by Google Cloud and designed for edge locations. It provides local storage, machine learning inference, data transformation, and export capabilities. Alphabet Inc. (NASDAQ:GOOG) targets this component at enterprises in industries such as manufacturing, supply chain, healthcare, and automotive, which require low-latency and high-throughput solutions. The company ranks as one of the best edge computing stocks in this regard.

Insider Monkey’s first-quarter data shows that 165 hedge funds were bullish on Alphabet Inc. (NASDAQ:GOOG), compared to 166 in the previous quarter. The largest stakeholder is Ken Fisher’s Fisher Asset Management, holding 46.3 million shares valued at $6.99 billion.

On April 25, Alphabet Inc. (NASDAQ:GOOG)’s chief executive Sundar Pichai announced that YouTube and Google’s cloud business are expected to achieve a combined annual run rate of over $100 billion by the end of 2024, highlighting significant revenue sources for the search giant. YouTube alone reported $8.1 billion in ad sales for the first quarter ending March 31, marking its highest Q1 revenue to date, up 21% year-over-year from $6.7 billion in Q1 2023.

Additionally, Bank of America’s industry checks in the search engine market recently revealed that Alphabet Inc. (NASDAQ:GOOG) remains the market leader with a dominant 95% share, while Bing’s search holds just 0.7%.

Lakehouse Global Growth Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its  2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOG) delivered a strong quarterly result that came in well ahead of analysts’ expectations. Revenue grew 15.4% (16.0% constant currency) to $80.5 billion and operating income grew 46.0% to $25.5 billion. Revenue growth accelerated across Search, YouTube Ads, and Google Cloud, all whilst the company delivered its highest operating margin since 2021 – showing meaningful progress in the company’s efforts to durably re-work their cost structure. On the Generative AI front, management emphasised the company’s infrastructure advantages including 5th generation TPUs(chips developed by Google specifically for AI training and inference), high performance data centre architecture, and AI models that are 100x more efficient versus 18 months ago. Overall, we believe that Alphabet is well placed for the AI opportunity ahead and still has significant latent earnings power. When combined with a relatively undemanding valuation of 21x forward net profit and over $100 billion of cash on the balance sheet, it’s not hard to see why we remain positive on the range of outcomes in the years ahead.”