According to Gartner, Edge AI “refers to the use of AI techniques embedded in [Internet of Things] endpoints….that can process and store data close to where it’s generated.”

In other words, Edge AI devices are connected to the internet and have their own AI rather than relying on distant data centers and the cloud. Edge AI generally enables AI-powered services to work significantly faster and is less vulnerable to security threats.

Moreover, Edge AI enables its users to utilize more applications. For example, unlike devices that rely on the cloud, Edge AI products can provide “facial recognition and real-time traffic updates” capabilities. Additionally, these devices are able to detect problems in industrial processes and help healthcare providers “monitor, test and treat patients more effectively.”

Given the advantages of Edge AI, I’m certain that the technology will proliferate tremendously. Here are three of the best Edge AI stocks to buy to profit from this strong trend.

Hewlett Packard Enterprise (HPE)

Hewlett Packard Enterprise (NYSE: HPE) recently widened its partnership with Nvidia (NASDAQ:NVDA). Under the deal, the companies will combine their offerings to enable firms “to quickly customize AI models using private data.” In fact, the AI applications that the firms will create will “connect with (their) data.” Most likely, those applications will involve at least some Edge AI, since companies still store much of their data on their premises and it’s much easier to “customize” Edge AI systems than cloud-based AI.

HPE’s widened partnership with Nvidia should boost its financial results. Meawhile, the company’s networking business, which it refers to as its “intelligent edge” unit, should get a big lift from Edge AI since firms will buy more networking equipment to facilitate the technology. Similarly, its supercomputing business should also get a lift from the Edge AI phenomenon because supercomputers also can be used to facilitate Edge AI.

These phenomena may already be occurring since the supercomputing unit’s revenue jumped 37% in the third quarter versus the same period a year earlier, while the sales of its networking unit climbed 41% year-over-year.

Arista Networks (ANET)

Arista (NYSE:ANET) specializes in selling network equipment to the major cloud infrastructure giants. However in 2022, it began selling hardware for localized data centers as well. That business should get a big boost from the proliferation of Edge AI.

Also noteworthy is that the firm “has an extensive portfolio of infrastructure software for managing local networks enabled by edge computing. “

In November, Goldman Sachs identified Arista as one of 26 stocks likely to deliver high sales growth and high returns on investment over the longer term.

Analysts, on average, expect the company’s earnings per share to jump to $6.56 this year from $4.58 last year.

Intel (INTC)

Intel (NASDAQ:INTC) should get a lift in the medium term from Edge AI within automobiles, as the company is intensifying its efforts to sell auto chips.

Earlier this month, INTC disclosed that it had acquired Silicon Mobility SAS, which makes AI chips used to manage the energy consumption of electric vehicles. Additionally, Intel recently announced a deal to provide “AI-enhanced, software-defined vehicle” chips to Geely, a large Chinese automaker.  

In a recent interview, Intel Senior Vice President & General Manager, Network & Edge Group Sachin Katti said that many of the company’s customers are looking to utilize Edge AI in addition to cloud-based AI. They are turning to Edge AI in order to reduce their costs and increase their privacy and security, Katti explained.

As a result, over the longer term, a “majority of (AI) inference will happen at the edge,” the manager stated. In fact Microsoft will want its AI assistant, Copilot, to be predominantly powered by on-site computing devices, Katti stated.

Intel should benefit from this trend because, as a result of the phenomenon, the firm will launch and sell many relatively expansive AI chips for PCs and laptops. These chips should generally be more profitable for Intel than its current offerings for laptops and PCs.

On the date of publication, Larry Ramer held a long position in INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.