Thanks to developments in artificial intelligence and the need for more effective data processing near where the data originates from, edge computing stocks continue to attract investors because of their rapid transformation.

With a value of $16.45 billion in 2023, the worldwide edge computing industry is predicted to expand 36.9% annually from 2024 to 2030, reaching $155.90 billion. Other projections indicate that, with a 36.7% increase over the following eight years, the market may reach $200.8 billion by 2031.

North America will be the largest market in the world in 2023, with about 40% of the edge computing market share. Asia-Pacific is expected to grow the fastest, with a 43% CAGR from 2024 to 2030. IoT, manufacturing and smart city projects all help explain this increase.

The magnitude of the market is driving several platforms to be developed. EdgeCortix’s most recent development for edge artificial intelligence uses is the SAKURA-II Edge AI processor. Meanwhile, Fastly (NYSE:FSLY) has developed a bot management system to target DDoS assaults and frauds and enhance edge security.

Edge computing is still volatile; hence, it’s important to stay as cautious as possible. For our research on edge computing stocks, we will thus consider large-cap firms with double-digit upsides.

Dell Technologies (DELL)

Due to the high demand for servers that run artificial intelligence applications, Dell Technologies (NYSE:DELL) is one of the best-performing edge computing stocks this year, up 86%.

One of the safest edge computing firms to buy, Dell’s edge computing initiatives will improve its consensus upside potential of 12.6%. They recently introduced Dell NativeEdge, the newest edge operations software from Dell Technologies. NativeEdge simplifies edge app security and expansion with unified control, zero-touch release and autonomous operations.

Dell Technologies’ next-generation PowerEdge servers with AI-enhanced edge computing. Edge-data-dependent companies need servers to manage enormous workloads and analyze real-time data. This variant has the multi-GPU liquid-cooled Dell PowerEdge XE9680L server. Dell and Nvidia will expedite edge AI deployment to help enterprises adopt AI.

Meanwhile, Hyundai AutoEver, Dell and Intel (NASDAQ:INTC) are teaming up to leverage AI in production within Dell’s ecosystem. This collaboration optimizes equipment performance, detects issues and enables predictive maintenance to expedite production using real-time data and AI. NativeEdge-supported Dell Validated Design for Manufacturing Edge improves these qualities and provides scalable, safe solutions.

Dell and EY also launched the EY Edge Technologies Lab to develop industry-specific edge solutions using NativeEdge. This lab helps organizations alter operations and data strategy using cutting-edge technologies and real-time data analytics.

Microsoft (MSFT)

Microsoft (NASDAQ:MSFT) regularly releases new edge computing products and services. MSFT’s quarterly product upgrades entail extensive research and development to help clients be more productive and secure.

Because of its relationship with OpenAI, the company is adding AI features to its edge computing products. Microsoft has been adding more space to its data centers to support these AI-driven edge computing projects.

Microsoft is doubling the size of its new data center to meet the growing demand for AI and edge computing services. As part of this growth, much money is spent on computer power and GPU capacity, which are important for building and launching AI models at the edge.

By virtue of its diversified business model, MSFT is one of the strongest edge computing stocks to purchase. Ten years of consecutive profitability underscoring the robustness of its business model complement a potential 10.8% upside for investors seeking edge computing stocks.

Amazon (AMZN)

Amazon (NASDAQ:AMZN) stock has boomed, up over 45% in a year, and analysts expect a further 14% gain. Investors like the company’s AI push, online retail resurrection and cloud expansion. Moreover, AMZN is also adding edge computing to its offerings. Amazon Web Services, one of its subsidiaries, is a big name in cloud computing and is now adding edge computing to its list of services.

AWS has released Snowcone, an edge computer and data-sharing device that is very small and light. It weighs less than five pounds, is made to work in rough conditions, and can be used in places with limited power, connection or room. It can move data online and offline, and companies like SmugMug and Flickr are already using it to make data capture and transfer faster during remote photo shoots.​

AWS continues expanding edge services for data processing, analysis, and storage closer to users. This project supports applications requiring real-time response and little latency. AWS simplifies the edge-to-cloud move by offering on-premises and ruggedized services and infrastructure.

In addition, AWS and the Australian Government want to develop a secure data cloud to simplify information sharing in Australia’s security sector. AWS is also expanding internationally, including in Taiwan, to fulfill the Asia-Pacific cloud demand.

On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.