Diversification is a critical part of managing any investment portfolio, and one way you can diversify is by investing in edge computing stocks.
As 5G and advanced AI tech get increasingly integrated into our daily lives, the demand for edge computing solutions is one the rise.
In this post, I'll explore what edge computing is, the best edge computing stocks you can invest in, and much more. Let's get started!
What Is Edge Computing?
Thanks to cloud computing, businesses can store vast amounts of data without using expensive, cumbersome hardware.
Many businesses have been taking advantage of cloud computing for a long time, and while there are plenty of benefits associated with using cloud-based tech, there are some notable downsides.
For example, there can be bandwidth and network speed issues, specifically because the network has to communicate with a remote server to access data.
Then there's edge computing, which is thought to be a way around the bandwidth and latency problems associated with cloud computing.
Edge computing involves data being processed more at the device level (as opposed to at the cloud level). But while edge computing is better than cloud computing in a number of ways, it's not a total replacement just yet.
That being said, edge computing can help a business complete a variety of tasks, such as caching, computation offload, and cloudlet storage.
Moreover, as 5G is rolled out in more locations, companies involved in this space will be investing more in edge computing, high-speed computing systems, cloud security services, and other innovative technologies.
As the edge computing market grows, there are plenty of opportunities to cash in.
How to Invest in Edge Computing
If you're ready to invest in the edge computing companies, you can use a number of methods to do so.
For example, you can buy individual stocks, invest in an edge computing ETF, or even purchase a mutual fund that specializes in tech stocks.
Of course, each option has its own set of pros and cons, so it's important that you do your research before deciding which route to take.
If you're ready to get started, I recommend using Acorns or M1 Finance to invest in both the edge and cloud computing market.
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16 Top Edge Computing Stocks
Since edge computing can be stronger than cloud computing in numerous ways, and as systems get more complicated, more and more industries will turn to edge computing.
And as demand for edge computing grows, the number of available investment opportunities will grow alongside it.
Some of the best edge computing stocks include:
- Nvidia
- Amazon
- Hewlett Packard Enterprise
- Fastly
- ARK Next Generation Internet ETF
- Microsoft
- Arista Networks
- Alphabet
- One Stop Systems
- IBM
- A10 Networks
- CloudFlare
- 21Vianet Group
- Lumen
- Limelight Networks
- Akamai Technologies
Nvidia
Nvidia should be one of your first considerations when you're looking for edge computing stocks.
As a major semiconductor and chip company, they specialize in manufacturing GPUs and tech for cloud servers, gaming computers, self-driving cars, spatial computing, and virtual reality systems.
As virtual reality and spatial computing tech get adopted on a larger scale, the value of Nvidia is likely to increase. Their edge computing solutions will also become more widely used, such as Nvidia EGX, which allows artificial intelligence to run on the edge.
Nvidia has been around for a long time, and it's one of the most stable companies in the edge computing industry. They've weathered many storms and always move forward.
Amazon
Amazon is one of the most valuable companies in the world today, and the company's stock is relatively safe, which is why it's regarded as a blue chip investment.
Once a high-quality e-commerce site, now this company also provides AWS cloud services, affiliate marketing programs, and so much more.
AWS cloud services utilize edge computing, which means investing in Amazon is investing in edge computing.
Many businesses prefer edge computing services because they allow for greater control at the user end, and also because they also make relying on the cloud an outdated practice.
Additionally, Amazon is rolling out 5G networks, loT, hybrid cloud systems, and machine learning tech for businesses that want to benefit as quickly as possible from edge computing making it a tremendous long term investment.
You also can't forget about Amazon's suite of smart devices and home products, many of which use edge computing to function.
Hewlett Packard Enterprise
Hewlett Packard Enterprise (HP) is another excellent investment option for those interested in edge computing stocks.
For decades, they've been manufacturing commercial printers and computers, and now they're even in the edge computing space.
Recently, HP launched the Aruba Edge Services Platform, and through this platform HP is attempting to use artificial intelligence to strengthen edge computing, in turn ensuring a more automated experience.
Additionally, they have built edge computing solutions for companies that are looking to reduce power consumption.
If you want a safe stock that'll also provide some growth opportunity, consider Hewlett Packard. Companies and individuals have been utilizing their products for years, and their edge computing solutions are helping businesses modernize and become more efficient.
Fastly
Fastly specializes in running content delivery networks, and they provide a range of services to businesses all over the world.
A content delivery network allows a business to access its data more easily, and businesses that need a reliable content delivery network turn to companies like Fastly. In short, you can't have efficient edge computing without a quality content delivery network.
Fastly is a practical investment for those who are looking to improve data storage and accessibility. Their work is bringing useful edge computing solutions to businesses across the world, which means in all likelihood this company, and its stock, are primed to excel over the next decade.
ARK Next Generation Internet ETF
Perhaps investing in a whole industry, rather than just a company, is the right move for you.
Investing in the ARK Next Generation Internet ETF is a great way to support edge computing and other innovative technologies, and when you invest in this ETF you're investing in dozens of companies.
Plus, investing in this ETF is a great way to diversify. After all, you won't be putting all your eggs in one basket. Even if one of the companies in the ETF doesn't do well, high performance from other stocks will offset this.
If you want to get serious about investing in edge computing, but you don't want to take a big risk with your money, consider buying shares in the ARK Next Generation Internet ETF.
Microsoft
Microsoft is considered one of the safer stocks on this list because the company has a successful track record and a promising future in the technology space. Microsoft is a giant in the tech industry, one that makes a range of products, including the Xbox, Office Suite, and Microsoft Azure.
Through Microsoft Azure, the company is in the process of improving edge computing with artificial intelligence. They're also working to enhance virtual reality tech with edge computing. If you want to profit off these advancements when they finally arrive, consider investing in Microsoft stock.
Arista Networks
Arista Networks is another option for those looking to invest in edge computing stocks. They primarily manufacture and sells network switches that are used at major data centers, but a range of other businesses use these to better control their data.
If you're on the hunt for a quality cloud computing system, it's likely you'll find what you're looking for at Arista Networks.
Their work improves 5G networks, metro networks, and multi-crowd infrastructure. They'll likely grow as edge computing becomes more popular, which means this could be a promising investment.
Alphabet
Alphabet, the parent company of Google, is another excellent choice for those who want a safe investment in a massive corporation.
This company serves customers in a variety of ways, and it's such a dominant force on the internet that virtually everyone knows about it.
One of the best things about Alphabet is that they have a range of businesses, and at present, they're offering search products, cloud services, paid advertising, and much more. It's highly-likely this company will continue to grow as the technology it specializes in evolves.
Alphabet and AT&T recently teamed up to create 5G networks that could support edge computing in the future. Alphabet is capable of doing just about anything, and they have the funds and experts necessary to be innovators in the edge computing space.
Similar to Amazon, Alphabet also manufactures smart devices like the Google Nest that can be found all over the world.
One Stop Systems
One Stop Systems is another excellent company, one that's been around for nearly 30 years. They manufacture the hardware that's needed for numerous artificial intelligence solutions, and they also offer edge computing options to businesses.
One Stop Systems is known for its work with artificial intelligence, but they are quickly becoming an important player in the edge computing space.
One great thing about the company is that they offer products that can work in more than one industry. And since the industries they serve are set to grow over the next several years, it's likely One Stop Systems is a promising investment opportunity.
They work with companies in the defense industry, the oil and gas sector, and the mining industry.
In short, One Stop Systems is an attractive investment because they provide companies with hardware and artificial intelligence, and both edge computing tech and AI are only going to become more essential.
IBM
IBM is one of the biggest tech companies operating today, and they're known all over the world.
This could be considered a safe investment because they have an excellent track record when it comes to making money and a variety of different ventures. IBM offers consulting services, infrastructure solutions, and enterprise software, and much more.
They are at the forefront in many spheres, and currently they are working on improving 5G networks and edge computing solutions. Take Edge Application Manager, for example, which can bring edge computing to a user-friendly environment.
If safety is what you're after when investing in edge computing stocks, consider IBM. This company is a leader in artificial intelligence development, supply chain management, data analysis, and much more.
A10 Networks
A10 Networks makes delivery controllers which help with optimizing connectivity on a server and managing who can access information on a device. Delivery controllers ensure a network is secure and able to run as fast as possbile.
Wider adoption of edge computing would mean companies would have to rely more on delivery controllers. And if this happens, A10 Networks' stock is sure to rise. A10 Networks also works with companies to strengthen 5G networks, and it's believed that over the next few years 5G will become the new normal.
CloudFlare
CloudFlare is a quality company with an excellent mission. They strive to help internet companies perform stronger while staying secure. CloudFlare provides ways to defend extensive networks and code at the edge. They also work with companies to create safe web-based applications and APIs.
Along with being able to complete entire platforms for companies, CloudFlare also assists businesses with IT infrastructure services, including compliance, defense against DDoS attacks, and analytics.
CloudFlare has a variety of clients, and as more and more companies need the security services they offer, their stock is sure to rise.
21Vianet Group
If you want to include some overseas companies in your portfolio, consider 21Vianet Group. This company is based in China and it's the country's main provider of cloud tech and data center services. They even have the data for Chinese companies like Alibaba which is one of the largest companies in the world.
This company makes use of Microsoft Azure to provide excellent services to businesses. And as the demand for edge computing grows, the demand for providers will grow too.
21Vianet Group is in a unique position, as they can satisfy growing demand all while keeping input costs low. If you want some investment exposure outside of the US, investing in this Chinese giant may be a good move.
Lumen
Lumen is one of the best companies when it comes to providing a quality server that clients can count on for their business applications.
The platform they use is reliable, trustworthy, and one of the fastest on the market. They already have an incredible platform, but they plan to expand further in the future; their goal is to have sixty market nodes.
This company offers tons of support to its clients, as they strive to make edge computing easier to access and use. Moreover, clients have multiple options for payments: they can pay as they go or pay for items individually. Clients can purchase data storage solutions, virtual machines, and private cloud solutions.
Additionally, Lumen offers edge computing solutions that will work with existing cloud infrastructure. Among other reasons, this is an excellent company to invest in because they help companies organize efficiently.
Edgio
Edgio, formally Limelight Networks, is one of many content delivery services, and they specialize in videos. The video content industry isn't going to stop growing any time soon, and as the growth continues new challenges will arise. For example, videos may take longer to render, and video quality could be reduced as well
Edge computing may be the solution to both problems, and Limelight Networks is offering edge computing services specifically to reduce the distance between the viewer and the server, improving the quality of the video and reducing the chance of lag at high-traffic times. They even have ways to access cloud security and handle file distribution at the edge.
oigdE isn't nearly as big as other companies on this list, but it's impressive considering its size. They certainly could grow substantially over the next few years, and if you don't mind a little added risk for a higher reward, this could be a great investment for your portfolio.
Akamai Technologies
If you want exposure to the world of edge computing, Akamai Technologies should be on your list.
This company's stock has done very well in the past, and many experts predict they will continue to enjoy success over the next several years. The company provides security at the edge, and they strive to create safer networks through excellent cloud and edge computing.
One of the best things about Akamai Technologies is that they can effectively work with a client to create a custom solution that suits their exact needs. They serve clients across industries, and their main customers come from financial services, the automotive industry, and content publishing.
If you're looking to invest in a company that's no stranger to success, choose Akamai Technologies. And since they're a leader in the space, you don't have to worry as much about this stock being volatile.
Final Thoughts on the Best Edge Computing Stocks
As technologies become more advanced, companies will need more advanced ways to store and manage their data, and that's where edge computing comes in.
There will be so many more edge computing applications, and these will strengthen 5G networks, improve data storage and security, and bring enhanced connectivity to more people around the world.
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