8 IoT Stocks to Invest In for 2020

Hassan Maishera - January 23, 2020

The internet of things (IoT) alongside a few other technologies such as Artificial Intelligence (AI) and blockchain technology are regarded as the future. They are expected to play a massive role in our everyday lives in the years to come. However, people find it hard to choose the IoT stocks to invest in.

The Internet of Things will be vital to the New economy, so it’s not a surprise that many investors want to buy IoT stocks early. However, choosing the IoT stocks to invest in for 2020 is no easy task. Many of these companies are still relatively obscure, so it’s hard to pick winners without doing a whole lot of research.

What Does IoT Mean?

Here is a definition of IoT and its devices. Click here to jump straight to the picks, or keep reading to learn more about the IoT industry.

IoT Definition

The Internet of Things (IoT) refers to the billions of physical devices around the world that are connected to the internet. The devices collect and share data, making it easy for people from all parts of the world to get access to various information with ease.

The emergence of cheap processors and wireless networks makes it possible to turn any device into a part of the IoT. Once they’re connected, devices can communicate real-time data without any human involvement. As a result, IoT devices can convey information effectively.

Several industries are already deploying IoT networks, including healthcare, logistics, and industry. For example, manufacturers use sensors to monitor their machines so they can read real-time performance data. These sensors allow operators to know when a device is about to fail so they can react accordingly without waiting for a potentially catastrophic breakdown.

In addition, consumers are also using IoT technology to turn their houses into fully-connected smart homes. Data shows that roughly 60,000 people shop for smart-home devices every month. The IoT network also includes wearables like smartwatches, plus connected cars, integrated supply chains, and much more.

What Are IoT Devices?

IoT devices are nonstandard computing devices that connect wirelessly to an internet network so they can transmit data. Onboard processors and sensors extend internet connectivity beyond communication devices, like smartphones and computers, to other devices that are not traditionally connected.

Once these ‘dumb’ devices have microprocessors within them, they can transmit data and interact over the internet. Thus, allowing the tools to be remotely monitored and controlled. What makes a device an IoT device is if it has chip processors, wireless networks, and can transmit information across the internet.

At the moment, we have several IoT devices we use in our daily lives. Some of these devices include smart TVs, toys, smart speakers, wearables like wristwatches, and smart appliances. Other devices include smart meters, commercial security systems, and several other smart city technologies such as those used in monitoring traffic or weather situations.

IoT Technology

Here are some examples of IoT solutions.

Smart Homes

Consumers primarily use IoT technology to connect devices in their homes. Smart speakers and connected sensors allow users to control their homes remotely. Consumers can also use these devices to monitor their homes while they’re away, so users can improve home security with IoT devices as well.

Wearables

Wearables such as Apple Watch, Sony Smart B Trainer, LookSee bracelet, and more are all developed thanks to the internet of things.

Smart City

Smart cities are springing up in several parts of the world. At the moment, we have smart cities in places such as Singapore, India, Dubai, Milton Keynes, Southampton, Amsterdam, Barcelona, Madrid, Stockholm, Copenhagen, China, and New York.

Connected Car

Modern vehicles connect to the internet and share data with a network of devices, both within and outside the vehicle. This technology will be essential to mastering autonomous vehicles.

Healthcare

This is one of the most prominent applications of IoT. The technology helps physicians improve health care and monitor their patients remotely. For example, a connected heart monitor could alert emergency services if a patient goes into cardiac arrest.

Smart supply chain

Connected supply chains will help businesses track their goods and organize their logistics more efficiently.

Smart Retail

Retailers can use connected technology to improve store operations, reduce theft, and enhance their customer experience.

IoT Stocks to Invest In Today

Here are the Internet of Things stocks you can buy now.

Best IoT Stocks of 2020

Akamai Technologies, Inc. (AKAM)

The shares of Akamai Technologies was one of the best performers in the IoT sector last year. Akamai Technologies is a Massachusetts-based company that specializes in content delivery networks, cybersecurity, and cloud service. Its content delivery network is one of the largest in the world, responsible for serving roughly 30% of all web traffic.

Akamai Technologies’ network allows real-time data collection and application messaging. In addition, these services offer scalable security for growing companies. The unveiling of new solutions such as Edge Cloud will see Akamai Technologies boost its stance in the IoT sector and reach more customers across the globe.

Zebra Technologies Corp. (ZBRA)

This IoT stock performed well in 2019, and it could outdo itself this year. Zebra Technologies manufactures and sells marking, tracking, and computer printing technologies. Its devices use passive Radio-Frequency Identification (RFID), so companies can track and manage their assets with ease.

Zebra prides itself on creating IoT solutions that lead to actionable data and insight. Thus, giving businesses unprecedented visibility into their businesses. Zebra recently launched SmartSight, one of its newest IoT solutions. Continued innovation and new product releases could help fuel demand for Zebra products as the IoT industry grows.

Small-Cap IoT Stocks To Invest In

Here are small-cap IoT stocks that were excellent over the past few months.

Adesto Technologies Corp (IOTS)

Adesto Technologies is one of the leading small-cap IoT stocks currently available to investors. The company is based in California, and it is a global provider of advanced semiconductors and embedded systems for IoT. At the moment, they have over 5,000 customers worldwide and are looking to build on that figure.

The company’s devices are used in several sectors, including industrial, transportation, and communications. Its collaboration with Microsoft will continue to drive growth for the company over the coming months.

Ambarella Inc. (AMBA)

Ambarella is another small-cap stock that has been performing well in recent months. The company, with its headquarters in California, has been around since 2004 and designs semiconductors. It majors in low-power, high-definition and Ultra HD video compression, image processing, and computer vision processors.

At the moment, Ambarella technologies are used in several areas such as automotive, security, consumer, and industrial & Robotics. The company also recently partnered with Lumentum and ON Semiconductor to provide better video solutions.

Cheap IoT Stocks To Invest In

For investors looking to buy the cheap IoT stocks, here are our best picks.

IoT Stocks To Invest In Under $10

CalAmp Corp. (CAMP)

CalAmp is a popular name in the IoT sector, and its stock is currently available below $10. Based in Irvine, CalAmp is a global provider of IoT software applications, cloud services, data intelligence, and networked telematics products and services.

It offers several solutions to businesses and governments, such as edge computing devices and SaaS-based applications. CalAmp’s technologies help in remotely tracking and managing vehicles and consumer products. The company majors in mobile gateways, an industry that is set to be worth billions of dollars over the next three years.

ORBCOMM Inc. (ORBC)

ORBCOMM is another cheap IoT stock to consider. The New Jersey-based company provides industrial Internet-of-Things applications and machine-to-machine communications solutions. The firm’s products help monitor and control various assets. The market for these products includes various industries, including transportation, utilities, and government.

The company expanded its operations over the past few months, including a launch of its in-cab mobile solutions for fleets. The new initiative will help improve efficiency and productivity in machine-to-machine communication.

IoT Penny Stocks

Bsquare Corp. (BSQR)

Bsquare is a leading IoT stock that is trading below the $5 mark. The company, with its headquarters in Washington, is an IoT provider, tech distributor, and system integrator. Bsquare is known for supporting OEMs, ODMs, and enterprises with professional development services. It has a global presence, which makes it an attractive IoT stock.

They offer a wide range of IoT services, including B2IQ Edge to Cloud Suite, B2IQ Cloud Base, IoT Engineering Services, B2IQ Gateway, B2IQ Edge, and Edge Modules.

Lantronix Inc. (LTRX)

Lantronix offers secure data access and management solutions for IoT and other information technology (IT) assets. They currently focus on providing IoT and IT management services to their customers around the world.

The recent acquisition of Intrinsyc Technologies Corporation will help Lantronix expand its presence in the IoT sector. Their vast ventures in areas such as blocks & gateways, application development platforms, mobility solutions are assisting businesses to learn and connect more with their customers.

Understanding the IoT Industry

The IoT industry has been experiencing rapid growth over the past few years. In 2017, the size of the IoT industry stood at $109 billion. It rose to $212 billion in 2019 and is set to a massive increase to $1.6 trillion by 2025. The market could exponentially grow by 2026, according to research reported by Business Insider.

In terms of the number of connected devices, the figure stood at 22 billion in 2018. At the moment, there are more connected devices worldwide than we have people. This figure will rise to more than 50 billion devices over the next few years.

A large number of IoT devices will come with cellular connections. According to research by Ericson, 70% of IoT devices by 2022 will use mobile technology. This means that more cellular-based IoT devices will be manufactured over the coming years.

Currently, the consumer sector accounts for the vast majority of IoT devices. Many companies are investing in smart devices because they can collect real-time information on their customers. The data collected from these devices is extremely valuable, so many companies want to break into the space. The industrial use of IoT is still well behind the consumer segment.

IoT and Cybersecurity

While the IoT sector is growing, incorporating proper cybersecurity capabilities is essential. IoT devices are extremely susceptible to cyber-attacks because they can be accessed and controlled remotely. Once IoT is fully deployed, practically everything will be network-connected. As a result, vital infrastructure systems could be at risk of an attack.

The IoT industry will rely on the cybersecurity sector to secure its flanks and protect it from malicious threats. The cyber squad will have to step up its game to protect the IoT network as it grows.

IoT Applications & Projects

IoT applications and projects are springing up in several parts of the world. The solutions and technologies in this sector are gaining applications in several industries.

IoT Security

IoT will improve security systems by allowing sensors and other devices to communicate more efficiently. As a result, the integrated network will make homes and businesses more secure. Cameras, sensors, and other connected devices could automatically alert law enforcement so they can respond quicker. Their presence alone can sometimes deter criminals from committing crimes in the first place.

IoT for Healthcare

The Internet of Things is having a meaningful impact on our healthcare system. IoT in this sector improves the time and ways patients interact with their doctors, allowing the physicians to deliver better healthcare.

IoT Blockchain

Blockchain can be the lynchpin that holds the Internet of Things together. The two technologies will need to grow together to develop a truly integrated network. Further development of blockchain could accelerate the mass adoption of IoT technology. Only blockchain networks can offer the security and scalability that the IoT sector needs to be truly effective.

Decentralized networks like blockchain are tamper-proof and highly secure. Blockchain’s secure architecture can help protect IoT devices from cyberattacks. In addition, blockchain distributes the processing burden across multiple devices instead of a single server, and these networks are fully transparent. These attributes make blockchain a perfect match for IoT, so these two industries will likely grow hand-in-hand.

IoT Stocks: Closing Thoughts

The IoT sector has been experiencing massive progress in recent years and it could continue to get bigger over time. If you’re ready to know more about IoT stocks to invest in, you should sign up for Stock Dork Alerts. We write our reports in plain English, so they’re easy to understand. Sign up today and get our 2020 Growth Stock Guide for free when you join. Click here to claim your free copy now.

Hassan Maishera is a cryptocurrency expert and a Stock Dork freelance contibutor.

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