We recently published a list of 13 Best Edge Computing Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Accenture plc (NYSE:ACN) stands against other best edge computing stocks to buy according to hedge funds.
Tech companies have been on a tear in recent years, particularly due to the rise of AI. However, other segments within the tech sector might warrant your attention, like cloud computing, particularly edge computing. Edge computing differs from cloud computing in that it brings computing power to where the data is created. Since data does not have to travel a lot, it can be processed much quicker compared to centralized computing, like Amazon Web Services (AWS). The amount of data being created is growing at an exponential rate as more devices are being connected to the internet. Edge computing makes things easier as data is processed close to where it is made.
The Edge Computing Area is Likely to Get a Push
The edge computing market is expected to get a big push from the rise of artificial intelligence (AI), with total spending projected to reach $380 billion by 2028, according to a new IDC report. Businesses are expected to gradually move away from traditional on-site hardware and instead put more money into cloud-based infrastructure-as-a-service (IaaS) solutions that support AI workloads at the edge. IDC estimates that global spending on edge computing will hit $261 billion in 2025, and that number is expected to grow by nearly 14% each year. The main driver behind this surge is the increasing demand for powerful systems that can handle AI tasks.
According to Alexandra Rotaru of IDC, the Internet of Things (IoT) still leads as the top use case for edge computing, but AI, augmented reality (AR), virtual reality (VR), robotics, and drones are quickly catching up. “IoT is still the biggest, but AI and AR are growing fast. In about a year, AI may become the fastest-growing area,” Rotaru said. Right now, most of the spending is going into on-premises setups—things like servers and storage systems—to meet current needs. Rotaru noted that even though it’s already a large market, there’s still room for growth because this infrastructure is so important.
IDC’s report looked at many industries and found that the biggest edge spending will come from retail, manufacturing, transportation, utilities, and finance. These sectors continue to invest in technology despite economic uncertainties. Rotaru added that recent surveys show businesses are more optimistic about IT spending in 2025 than they were for 2024. This confidence matches findings from a PwC Global AI Study, which reported that most business leaders see AI as a major advantage and are either using it or planning to adopt it soon.
While companies are currently focused on buying hardware, IDC expects many to shift toward cloud and service-provider-based IaaS as time goes on. This opens the door for cloud companies to capitalize on their existing infrastructure. Rotaru said this shift is happening because cloud providers are becoming more capable of handling AI workloads at scale.
Our Methodology
We reviewed edge computing ETFs to compile a preliminary list of stocks and then selected the ones that were the most popular among elite hedge funds, as of Q4 2024.
At Insider Monkey we are obsessed with 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Accenture plc (NYSE:ACN)
Number of Hedge Fund holders: 79
Accenture plc (NYSE:ACN) is a global professional services firm, that offers consulting, digital transformation technology services, and outsourcing. However, edge computing is a part of the company’s offerings as it helps its clients to modernize their tech infrastructure. The tech behemoth helps businesses define where and how edge computing fits into their digital strategy. Accenture plc (NYSE:ACN) designs and implements edge solutions. The company also specializes in deploying AI models and IoT systems at the edge.
Accenture plc (NYSE:ACN) adjusted the lower end of its revenue forecast for 2025. It is now expecting a growth of 5% to 7%, up from the previous 4% to 7%. The company is optimistic about the demand for its AI Integration services. The stock rose 3% upon this adjustment. However, the company is expecting a slowdown in its federal services unit due to a massive cut in US government spending. Meanwhile, Accenture is penning a joint venture with Fincantieri Group unit Fincantieri NexTech to “accelerate digital transformation” in the cruise, defense, and port infrastructure sectors. The Fincantieri Ingenium joint venture will initially develop the Navis Sapiens system for new ships and upgrade existing fleets.
Overall, ACN ranks 5th on our list of best edge computing stocks to buy according to hedge funds. While we acknowledge the potential of ACN as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ACN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.