According to McKinsey & Company, data from connected devices will give companies insights which will have a potential market value of $11 trillion. Internet of Things industry will have a total worth of $267 billion by the end of 2020. The world is fast moving towards connectivity, and it is but confirmed that IoT is the next big thing. The Wall Street is going berserk over IoT stocks. Most of the IoT stocks are cheap, which means now is the right time to enter the market. In this article we will talk about the best IoT stocks to buy if you want to make huge profits in the coming years.
Sierra Wireless, Inc. (USA) (NASDAQ:SWIR)
Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is a Canada-based manufacturer of 3G and 4G modules and gateways. These devices form the backbone of most of the Internet of Things products around the world. Sierra has a very few competitors, as it acquired small IoT chipmakers, including AnyData, Maingate, Mobiquithings, and GenX Mobile. In the fourth quarter, Sierra’s sales grew by 13%. The stock is up over a whopping 82% since the start of the year. This depicts the insane potential this stock has. Sierra Wireless recently said in a statement that it is experiencing a rising demand from OEM customers. The company revenue stream is diversified, as it is operating in payments, mobile, automotive industry and related segments.
Skyworks Solutions Inc (NASDAQ:SWKS)
Skyworks Solutions supplies radio frequency chips to home automation companies, wireless operators, communication networks and IoT-related companies. The stock has gained over 30% year-to-date. Chips made by Skyworks make it possible for machines to interact with each other (Machine-to-Machine communication). Perhaps the biggest factor which makes Skyworks Solutions a buy is its strong business association with Apple. According to investment firm Oppenheimer, Skyworks accounts for almost 40% of its revenue from the chips it makes for Apple devices. But Skyworks is working on ways to cut its reliance on Apple in order to diversify its business model. The company is making chips for connected cars and wearable devices.
STMicroelectronics NV (ADR) (NYSE:STM)
STMicroelectronics is a Swiss company which makes chips for automotive industry, home appliances and wireless products. It is the largest IoT devices manufacture in Europe. The company’s revenue is soaring for the last few quarters amid a rising demand in the consumer electronics industry. Analysts expect STMicroelectronics revenue to increase by 8% in 2017. The stock has gained about 29% since the start of this year.
International Business Machines Corp. (NYSE:IBM)
IBM is one of the best stocks to buy if you want to make money out of the lucrative Internet of Things industry. Perhaps the biggest benefit of this stock is that IBM’s business model is diversified, so you won’t lose money if IBM’s IoT bets don’t take off as expected. IBM has pledged to invest $3 billion in the IoT segment over the next two years. A major chunk of IBM’s “Strategic Imperatives” business comprises of IoT. The company is now transforming its trademark Watson platform towards IoT. IBM’s connected cars system is immensely popular among the self-driving car companies. IBM’s smart decision making systems are used in cognitive business segments all over the corporate world.