Hewlett Packard Enterprise (HPE), Arista, and Intel are three companies that investors should consider when looking to profit from the growth of Edge AI technology. Edge AI devices, which have their own AI capabilities and process data closer to its source instead of relying on cloud-based systems, offer numerous advantages such as faster processing, increased security, and more application options.
HPE recently expanded its partnership with Nvidia, with plans to develop AI applications that connect with private data. This partnership is expected to boost HPE’s financial results and benefit its networking and supercomputing businesses, which can facilitate Edge AI. The company has already seen a significant increase in revenue from these units.
Arista, known for selling network equipment to major cloud infrastructure providers, has also ventured into the localized data center market. With its extensive portfolio of infrastructure software for managing local networks enabled by edge computing, Arista is well-positioned to capitalize on the proliferation of Edge AI. Goldman Sachs even identified Arista as one of the stocks likely to deliver high sales growth and returns.
Intel, on the other hand, is focusing on the automotive sector with its Edge AI efforts. The company recently acquired Silicon Mobility SAS, a manufacturer of AI chips for electric vehicles. Intel has also secured a deal with Geely, a major Chinese automaker, to provide AI-enhanced, software-defined vehicle chips. In addition to reducing costs, enhancing privacy, and ensuring security, customers are increasingly turning to Edge AI for inference. This trend opens up opportunities for Intel to launch and sell more profitable AI chips for PCs and laptops.
As Edge AI continues to gain momentum, investors should keep a close eye on HPE, Arista, and Intel. These companies are well-positioned to leverage the growth of Edge AI technology and deliver strong financial results.
