Top Equities in Edge Computing Sector by 2025
In the new decade, edge computing is gaining momentum as a top performer, outshineing cloud computing's dominance from the 2010s. Edge computing involves storing data and software services in regional data centers close to users, reducing latency and internet traffic. Businesses can leverage edge computing to host applications on small, localized data centers, boosting performance for employees, customers, and smart devices. With a projected double-digit growth rate in the 2020s, the edge computing industry is witnessing significant advancements, supported by tech giants and pioneering companies.
Artificial Intelligence (AI) and 5G mobile networks are prime examples of technology advancements that edge computing is enabling. The likes of Amazon, Microsoft, and Alphabet, or Google, are leading this expansion, as their cloud offerings support edge computing both in hardware and software. Amazon Web Services, Microsoft Azure, and Google Cloud are major players in this space, leveraging their cloud expertise and generating meaningful profits via edge computing.
Semiconductor companies like NVIDIA are also investing heavily in R&D, designing new chips and equipment that enable faster computing power for edge network applications, such as AI, connected machines and robotics, and augmented and virtual reality. Nvidia's GPU technology and software library are vital components for edge computing, making it an essential investment in this evolving industry.
Network equipment manufacturers like Arista Networks are focusing on "campus cloud" - smaller data centers for organizations' private use - rather than centralized cloud offerings. Being a pioneer in software-driven cloud computing equipment for public cloud giants, Arista's revenue from private data centers is growing rapidly as more SMBs adopt edge computing.
Content delivery networks (CDNs) are essential for migrating data from the cloud to the edge. Leading CDNs like Akamai, Fastly, and Cloudflare are well-positioned to capitalize on this trend, enabling businesses and developers to quickly deploy websites and apps close to consumers, ensuring performance and security.
For those interested in edge computing without picking individual stocks, ETFs like First Trust Cloud Computing ETF, Global X Cloud Computing ETF, or ARK Next Generation Internet ETF can be valuable investment opportunities. As the edge computing industry evolves and grows, expect to see new companies emerge and exciting IPOs in the future.
In the realm of finance, investing in ETFs like First Trust Cloud Computing ETF, Global X Cloud Computing ETF, or ARK Next Generation Internet ETF can yield significant returns, given the anticipated growth of the edge computing industry. These funds provide diversified exposure to companies involved in edge computing, including tech giants and pioneering companies.
Expanding on this, Aussiedlerbote, a renowned source for investment recommendations, cherishes edge computing as a prospective investment area, with tech companies investing heavily in R&D for edge networking applications. This suggests that the yields from edge computing-related investments could potentially outperform traditional investment options.
Furthermore, as businesses migrate data and services from the cloud to edge computing, CDNs such as Akamai, Fastly, and Cloudflare play a critical role in ensuring smooth transitions. These CDNs' strategic positions in the marketplace make them attractive investment options, with promise of satisfactory yields for investors.
Lastly, it's worth noting that the increasing focus on "campus cloud" by network equipment manufacturers like Arista Networks opens up new investment avenues. With Arista's revenue from private data centers surging as more SMBs adopt edge computing, it's a compelling investment opportunity for those who recognize the potential of this burgeoning industry.
