While the term edge computing is still relatively unpopular, it’s potential as an emerging technology in an ever-interconnected world should not be ignored. Specifically, edge computing refers to the process of exporting data through a dedicated signal provider to a secure server for computational purposes. This differs from traditional cloud computing because it does not enter the Internet at any point. Instead, the connection is always secure and a private channel from the customer to the service provider.
Now, as 5G speeds increase, and the telecommunications network of the United States continues to improve, the connection speed between customers and edge computing service providers is fast enough to support real-time data processing like the kind needed for robotic surgery or autonomous manufacturing.
As such, read here for three undiscovered edge computing stocks that have not yet received a valuation for their potential and that trade primarily as telecom companies.
Verizon (VZ)
The front runner in the race to achieve 5G, private, mobile edge computing, Verizon (NYSE:VZ) has received little attention among undiscovered edge computing stocks. While the company’s recognition comes from its 5G network operations, it has leveraged this expertise and experience to develop its one-of-a-kind, totally secure, private and easily integrated edge computing service.
While the financial ramifications of mobile edge computing have yet to benefit Verizon, its investments are part of a longer game. As such, investors should still buy into Verizon before this technology puts it in a league of its own.
Moreover, Verizon has demonstrated exceptional commitment to its investors through continuously raising its dividends, regardless of revenue and profit margins. The company takes care of its shareholders while still prioritizing innovation and searching for new markets to apply technologies. Investors may want to watch Verizon’s technological progression closely over the next few years, as this may turn VZ stock genuinely lucrative.
AT&T (T)
While lagging in technology to Verizon, AT&T (NYSE:T) still has the largest network and longest history in the U.S. to pull from for developing its edge computing services. Moreover, the legacy telecom provider has focused on a more pragmatic form of edge computing with its 5G public edge network instead of opting for private.
This strategy marks a departure from a focus on speed in favor of focusing on availability. As such, it’s clear that AT&T is hedging its bets on being a wider-range service provider to a broader array of customers than the niche applications Verizon is aiming for.
In this case, it comes down to investor preference. AT&T is certainly a more conservative bet among telecom companies and undiscovered edge computing stocks, but that doesn’t mean it won’t benefit just as much as, if not more than, VZ stock. Furthermore, AT&T’s sheer size and growth momentum may make T stock a more attractive long-term play than VZ.
T-Mobile (TMUS)
Finally, we have arrived at T-Mobile (NASDAQ:TMUS). Easily one of the most impressive telecom companies in terms of growth and investor interest, T-Mobile aims to win the edge computing race through strategic partnerships. Last year in June, the company announced it would be working with Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) to accelerate the development of its edge computing services.
Now T-Mobile has connected its 5G Advanced Network Solutions (ANS) directly to Google’s Distributed Cloud Edge. This will make use of TMUS’ blazing-fast 5G network while putting the computing burden on Google, which can more than handle it. This decision came as Grand View Research projected the global edge computing market could grow by 37.9% to $155.9 billion in 2030.
Thus, savvy investors may want to saddle up with TMUS for the ride as it remains one of Wall Street’s undiscovered edge computing stocks.
On the date of publication, Viktor Zarev 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.
