In this article, we will look at the 10 Best Edge Computing Stocks to Buy Right Now.
Edge computing stocks are drawing more attention as more computing starts moving closer to where data is actually created. It matters because not every workload can wait to be sent back to a distant cloud data center before something happens. As AI and industrial automation demand faster response times, processing data closer to where it is generated is becoming increasingly necessary.
That helps explain why the institutional commentary around the theme is broader than just software or chips alone. Invesco notes that “the full value-chain is worth considering” and that “few AI-related investments are pure plays.” T. Rowe Price points to “memory, optics, and power” as “essential infrastructure,” underscoring that some of the most important edge enablers are the less flashy components that make local processing, connectivity, and data movement possible. Another layer includes digital infrastructure like cell towers and data centers alongside big data and mobile connectivity as part of the backbone. In summary, edge computing is not just one industry. It is a wider buildout across multiple segments that helps process data nearer to the source.
With that in mind, we’ll now look at the 10 Best Edge Computing Stocks to Buy Right Now.
Our Methodology
We used the Finviz screener to identify edge computing stocks that are viewed favorably by analysts. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Akamai Technologies, Inc. (NASDAQ:AKAM)
On April 23, 2026, Oppenheimer raised the price target on Akamai Technologies, Inc. (NASDAQ:AKAM) to $130 from $115 and maintained an Outperform rating ahead of quarterly results. The firm expects revenue to come in at the high end of guidance, citing checks that show average contract size increasing mid-single digits year-over-year, driven by adoption of Guardicore and Noname security modules along with Cloud Infrastructure offerings.
Meanwhile, Piper Sandler raised its price target on Akamai Technologies, Inc. (NASDAQ:AKAM) to $114 from $97 and kept a Neutral rating, saying it came away incrementally more positive after reviewing the opportunity and narrative, though not enough to turn positive as much of the multiple expansion already reflects expected success.
Earlier in April, Akamai announced a relationship with Arrow Electronics’ enterprise computing solutions business to expand access to its cloud, security, and application delivery solutions across Arrow’s ecosystem. The collaboration is intended to help bring enterprise-grade offerings to market more quickly and support customers as digital operations continue to expand.
Akamai Technologies, Inc. (NASDAQ:AKAM) provides security, delivery, and cloud computing solutions globally.
9. Applied Optoelectronics, Inc. (NASDAQ:AAOI)
On April 17, 2026, Applied Optoelectronics, Inc. (NASDAQ:AAOI) announced plans to expand its Houston-area footprint with the addition of two adjacent buildings in Pearland, Texas, adding approximately 388,000 square feet of manufacturing capacity.
The move builds on its existing U.S. operations, including a 210,000-square-foot facility under development near its Sugar Land headquarters, where it currently operates 135,000 square feet, as well as a recently leased 154,000-square-foot building at Blue Ridge Commerce Center.
Earlier in April, Applied Optoelectronics, Inc. (NASDAQ:AAOI) said that it has received a new $71M order for 800G single-mode data center transceivers from a hyperscale customer, bringing total orders from the same customer to $124M since mid-March and more than doubling its existing backlog from that customer.
Applied Optoelectronics, Inc. (NASDAQ:AAOI) designs, manufactures, and sells fiber-optic networking products for data centers, telecom, and broadband markets.
8. Lumentum Holdings Inc. (NASDAQ:LITE)
On April 20, 2026, Northland analyst Tim Savageaux raised the price target on Lumentum Holdings Inc. (NASDAQ:LITE) to $1,000 from $775 and maintained an Outperform rating, citing accelerating demand for AI optical connectivity and higher estimates across suppliers exposed to the trend.
Meanwhile, Morgan Stanley raised its price target on Lumentum Holdings Inc. (NASDAQ:LITE) to $710 from $595 and kept an Equal Weight rating. The firm noted continued strength in optical stocks and said it does not expect enthusiasm for the group to “wane just yet,” as the bullish case remains intact.
Earlier in the month, JPMorgan raised its price target on Lumentum Holdings Inc. (NASDAQ:LITE) to $950 from $565 and maintained an Overweight rating after the company’s investor briefing. The firm pointed to stronger-than-expected forward visibility across growth drivers, supported by new customer agreements and capacity expansions that reinforce confidence in its financial outlook.
Lumentum Holdings Inc. (NASDAQ:LITE) manufactures and sells optical and photonic products globally.
7. Ondas Inc. (NASDAQ:ONDS)
On April 24, 2026, Ondas Holdings Inc. (NASDAQ:ONDS) completed its $175M merger with Mistral, giving the company direct access as a prime contractor to U.S. Army and Special Operations contract vehicles, while adding U.S.-based manufacturing, integration, and federal contracting capabilities. The transaction is part of Ondas’ strategy to expand participation in large-scale U.S. government programs. Mistral brings established relationships across defense and homeland security agencies and will support existing programs while also serving as a dedicated program capture arm in the U.S., helping scale deployment of Ondas’ autonomous systems, including aerial platforms, counter-UAS technologies, and ground robotics. The company said the addition of domestic production and execution capabilities also strengthens its ability to meet procurement requirements tied to supply chain security and long-term sustainment.
On April 20, 2026, Ondas announced that its subsidiary, 4M Defense, received a $10M order as part of a broader $50M demining program tied to the $1.7B Eastern Border Security Barrier initiative led by the Israeli Ministry of Defense. The award represents the initial phase of execution and expands the company’s demining operations, supporting land clearance needed for infrastructure development along Israel’s eastern border.
Earlier, Ondas also announced the launch of ONBERG Autonomous Systems, a joint venture with HD Advanced Technologies, a subsidiary of Heidelberger Druckmaschinen AG. The venture has begun operations at Heidelberg’s facility in Brandenburg an der Havel, Germany, marking a step in Ondas’ European expansion and its efforts to scale drone defense systems globally.
Ondas Holdings Inc. (NASDAQ:ONDS) provides private wireless, drone, and automated data solutions.
6. Fastly, Inc. (NASDAQ:FSLY)
On April 14, 2026, Evercore ISI initiated coverage of Fastly, Inc. (NASDAQ:FSLY) with an Outperform rating and a $32 price target. The firm said the company’s narrative has shifted in 2026 from slowing, delivery-driven growth and profitability concerns to “higher-quality growth supported by stronger execution and a structural platform shift,” and views Fastly as positioned to become embedded infrastructure for AI-native applications.
On April 9, 2026, Fastly and LALIGA announced a collaboration to develop technical solutions to address illegal streaming of live sports, particularly LALIGA matches. With piracy estimated to cost clubs between $700M and $800M annually, the companies are working on a joint initiative aimed at helping platforms combat piracy while supporting rights holders in protecting the economic value of their content.
Earlier in the month, Piper Sandler raised its price target on Fastly, Inc. (NASDAQ:FSLY) to $30 from $14 and maintained a Neutral rating, saying it became incrementally more positive after reviewing the company’s positioning, though not enough to shift its overall stance as valuation already reflects expected progress.
Fastly, Inc. (NASDAQ:FSLY) operates an edge cloud platform for processing, delivering, and securing applications globally.
While we acknowledge the potential of FSLY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FSLY and that has 100x upside potential, check out our report about the cheapest AI stock.
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