We recently released a list of
13 Top Edge Computing Stocks to Consider Investing In, As Suggested By Hedge Funds
In this piece, we will examine how Dell Technologies Inc. (NYSE:DELL) measures up against some of the top edge computing stocks favored by hedge funds for investment purposes.
In recent years, technology firms have experienced significant growth, largely driven by advancements in artificial intelligence. Nonetheless, alternative sectors within the tech industry deserve consideration too, such as cloud computing—especially edge computing. Unlike traditional cloud computing, which relies on central servers for processing tasks, edge computing places computational capabilities closer to where the actual data generation occurs. This proximity significantly reduces latency since data doesn’t need extensive travel time before it’s processed; this contrasts with platforms like AWS. With an ever-increasing volume of generated data spurred by expanding connectivity across various devices, edge computing simplifies matters by handling information nearer to its source.
The Field of Edge Computing May Receive a Boost
The growth of the edge computing sector is anticipated to receive significant impetus due to advancements in artificial intelligence, as forecasted expenditure is predicted to soar up to $380 billion by 2028, as highlighted in an updated IDC study. Companies are likely to shift their focus progressively from conventional local equipment towards investing further resources in cloud-centric Infrastructure-as-a-Service (IaaS) platforms designed specifically for supporting AI operations at the network’s periphery. As estimated by IDC, worldwide investments in edge computing should escalate to around $261 billion by 2025, with expectations indicating approximately a 14% annual increase thereafter. This acceleration primarily stems from heightened requirements for robust infrastructures capable of executing AI-related processes effectively.
As per Alexandra Rotaru from IDC, IoT remains at the forefront when it comes to applications for edge computing; however, AI, augmented reality (AR), virtual reality (VR), robotics, and drones are rapidly closing the gap. “While IoT currently holds the lead, both AI and AR are experiencing rapid expansion,” she stated. According to her predictions, within roughly twelve months, AI could potentially emerge as the sector with the quickest development pace. Currently, much of the investment is being directed towards local infrastructures such as servers and data storage solutions to address immediate requirements. Despite representing an extensive marketplace, Rotaru emphasized that further advancements in these critical areas can still be anticipated due to their increasing importance.
The IDC study examined various industries and discovered that the highest expenditure on edge computing will be driven by retail, manufacturing, transportation, utilities, and finance. Despite current economic challenges, these segments remain committed to technological investments. Additionally, Rotaru mentioned that recent polls indicate companies are more hopeful regarding their information technology budgets for 2025 compared to those of 2024. This positive outlook aligns with the conclusions drawn from a PwC Global AI Study, where most executives view artificial intelligence as a significant benefit and have begun implementing or intend to implement this technology shortly.
As businesses presently concentrate on purchasing hardware, IDC anticipates that numerous organizations will transition towards utilizing cloud services and Infrastructure-as-a-Service (IaaS) from service providers over time. This trend creates opportunities for cloud firms to leverage their current infrastructures. According to Rotaru, this change is occurring due to cloud providers gaining increased proficiency in managing large-scale artificial intelligence tasks efficiently.
Our Methodology
To create an initial list of stocks for our review of edge computing ETFs, we focused on identifying those that had gained significant traction with top-tier hedge funds by the end of Q4 2024.
At Insider Monkey, we have an intense focus on the stocks that hedge funds heavily invest in. This interest stems from our findings which indicate that mimicking the leading stock choices made by successful hedge funds allows us to beat the market. Each quarter, our quarterly newsletter recommends 14 small-cap and large-cap stocks through this strategy, achieving a return of 373.4% since May 2014, thereby surpassing its benchmark by 218 percentage points.
see more details here
).
A group of technology specialists conversing about recent advancements in network security as they look at the display of their laptop.
Dell Technologies Inc. (NYSE:
DELL
)
Number of hedge fund holders: 63
Throughout much of its existence, Dell Technologies Inc. (NYSE: DELL) has primarily focused on producing computer hardware. In recent years though, the firm shifted towards incorporating more software solutions. Dell develops specialized equipment designed specifically for use in remote areas with limited resources such as inadequate space, insufficient power supply, and poor internet connections. Additionally, they integrate both hardware and software systems aimed at streamlining and overseeing operations within these distant setups. Furthermore, the corporation places significant emphasis on advanced analytics along with artificial intelligence at the edge level, enabling enterprises to process information promptly onsite.
Recently, Dell Technologies Inc. (NYSE: DELL) introduced a range of updates designed to revamp data centers for artificial intelligence tasks. These improvements aim to boost the reliability, performance, and flexibility of operations. As AI-driven processes become increasingly demanding, the firm is concentrating on breaking down their infrastructure so as to distinguish computational capabilities from storage and network functions. Despite positive projections from industry experts who anticipate significant gains for this equity, challenges persist. Financial observers caution that new taxes implemented by President Trump could expose certain technology shares such as those of Dell Technologies Inc. (NYSE: DELL) to greater risks.
Overall, DELL
ranks 8th
Among the top picks for edge computing stocks recommended by hedge funds, we recognize DELL’s potential as an investment. However, we’re inclined towards believing that AI stocks offer greater prospects for substantial returns over a shorter period. One particular AI stock has seen growth year-to-date despite many prominent AI shares declining approximately 25%. Should you be seeking an AI equity with higher upside potential compared to DELL yet trading below five times its earnings, consider reviewing our detailed analysis on this matter.
cheapest AI stock
.
READ NEXT:
20 Top AI Stocks You Should Consider Purchasing Today
and
30 Top Stocks to Purchase Currently as Recommended by Billionaires
.
Disclosure: There are none. This piece was initially published here.
Insider Monkey
.
