The Internet of Things (IoT) is one of the most significant shifts in the history of technology. It is redefining the way gadgets and devices operate. The Internet of Things network already consists of billions of devices connected to each other. And it is expected to experience exponential growth in the upcoming years.
2019 is expected to be a highlight year for IoT, promising to be a robust tech niche in the coming years. With the huge potential for growth and the popularity of IoT, IoT stocks are expected to prosper in the coming times. Here are the 4 best stocks that you should buy in 2019:
Qualcomm (NASDAQ – QCOM)
Qualcomm Inc. has been leading the way in connectivity for a few decades now. The company is a renowned chip maker. That is expected to provide its ‘X50’ modem to a huge number of 5G devices this year. The company is also a renowned developer of security features for IoT applications. Qualcomm has already contributed more than a billion IoT devices. Its latest Snapdragon processor is expected to serve as an integral part of the primary infrastructure that will turn IoT into a reality; offering turnkey solutions.
As the 5G rollout will take place in multiple waves, the stocks of Qualcomm potentially have over two years of momentum. With investments in more than 120 IoT, Cloud, Virtual Reality, Drones and other related companies, analysts expect a significant rise in the company’s profits in 2019 and 2020. As the market took a dive towards the end of the previous year, so did the share price of Qualcomm. A low present valuation of the stock and a profit recovery forecast make QCOM stock a lucrative investment option.
Skyworks Solutions (NASDAQ: SWKS)
Skyworks Solutions specializes in designing chips for mobile communications and similar wireless communication technology. Their chips also appear in IoT devices like wearable, medical devices, appliances, etc.
Being a primary supplier to Apple, SWKS encountered a fall in its stock prices as the shipping volumes of Apple phones diminished. Again, with the IoT market flooding with ship suppliers, a situation of oversupply was created, hurting the stock prices of SWKS further. Though this might sound like bad news for the company, Skyworks still hopes for recovery with a few notable tricks. The company is winning contracts as equipment for 5G infrastructure gain demand. Also, the company has witnessed a boost in its business in other markets like advanced WiFi routers and radio systems of military grade.
The 5G rollout is just around the corner. The company’s outstanding chip portfolio and strategic global partnerships promise growth in the coming times. The low towing prices of the stock and the generous profit margins supported by the company promise it to be a fantastic opportunity.
Sierra Wireless Inc. (NASDAQ: SWIR)
Sierra Wireless Inc. is a standout company in this list as it focuses exclusively on IoT. A pioneer in manufacturing modules and wireless chips, the company was ranked first in the embedded market share for six years in a row (till 2017). Contributing to smart cities, connected devices and wearable; the products of SWIR is used by the top tablet and PC makers, Smart meter manufacturers, Automotive OEMs, and many others.
Sierra Wireless Inc. is an integral name in the world of IoT. As a leading supplier of device-to-cloud solutions, the company offers exposure to the most interesting development in the tech industry. Though share prices have been volatile since 2017 and the stocks lost momentum in the meltdown in 2018; the stocks have been bullish since the start of 2019. The company has not only witnessed a growth in its revenue but has also announced several deals with big customers like Volkswagen. SWIR will be supplying chips for their vehicles starting from the later part of 2019. And the revenue will be earned in 2019 and 2020. Thus, SWIR has already stabilized its position and promises profits for investors in the upcoming years.
NXP Semiconductor (NASDAQ: NXPI)
NXP Semiconductor produces chips for consumer and industrial applications and automotive, meaning the IoT is an integral component of the company’s products. The chips are used to connect varied devices ranging from drones to cars and health motors. This allowed the company to stand tall when most semiconductor companies were hurt in 2018.
The stocks of the company did start falling drastically from its all-time high in February 2018. A failed attempt by Qualcomm to take over the company further hurt the stock. However, analysts predict notable growth in 2019 and double-digit profits in the year 2020 when IoT is expected to witness exponential growth. With a smaller market cap, NXPI is just starting off, promising profits for those who invest in it.
These are the four major IoT stocks that you should consider buying in 2019.
Sources:
https://www.fool.com/investing/2019/05/15/3-top-tech-stocks-to-buy-in-may.aspx
https://investorplace.com/2019/01/4-internet-of-things-stocks-connect/
https://www.profitconfidential.com/stocks-list/technology-stocks/iot-stocks-consider/