5 Best Edge Computing Stocks To Buy

3. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 173

NVIDIA Corporation (NASDAQ:NVDA) is one of the best edge computing market leaders. NVIDIA offers Enterprise Edge Computing, Industrial Edge AI, and Autonomous Machines and Embedded Edge solutions. On February 21, the company reported a Q4 non-GAAP EPS of $5.16 and a revenue of $22.1 billion, outperforming Wall Street estimates by $0.52 and $1.55 billion, respectively. Revenue for the quarter increased 265.3% on a year-over-year basis. 

According to Insider Monkey’s fourth quarter database, 173 hedge funds held stakes in NVIDIA Corporation (NASDAQ:NVDA), compared to 180 funds in the last quarter. Rajiv Jain’s GQG Partners is a prominent stakeholder of the company, with nearly 14 million shares worth $6.8 billion. 

SaltLight Capital stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its fourth quarter 2023 investor letter:

“We were fortunate to have some exposure to some of the ‘Magnificent Seven’ – Amazon, NVIDIA Corporation (NASDAQ:NVDA), Meta Platforms and Google (although in aggregate, we still hold a smaller weighting than the S&P 500).

While we are cautious in AI infrastructure, we do think there are mispriced opportunities in areas of application software where AI can be infused to make a step change improvement. Posted in our office is this chart that ASML provides at each of its investor days. This chart is a little outdated from 2021, but we think illustrates how value (in operating profit) was distributed across semiconductors, hardware, and then software & services. It’s very clear that most of the economic value in the past has accrued to the software services (in gray) built on the backs of highly technical companies run by extremely smart people.

Why is this? We think it is due to a combination of distribution and network effects. Our working hypothesis right now is that this will likely remain a similar outcome in the AI epoch. One outlier right now is Nvidia which is capturing 80% margins..” (Click here to read the full text)