IoT Stocks: A Look at the Opportunities in the Market

The Internet of Things (IoT) is far more than just a trend—it is a revolutionary component of modern technologies gradually penetrating various industries. This networking of physical objects with the internet opens up new potentials in areas such as smart manufacturing and supply chain management. Despite economic uncertainties that could affect corporate spending behavior in the second half of the year, experts forecast a recovery in IoT investments by 2025. The global IoT market is expected to grow annually by 24.3% from 2024 to 2032, reaching the astonishing volume of 4,062.34 billion USD. A growing demand for smart cities, buildings, and infrastructures drives this development. In light of urban expansion and increasing population numbers, intelligent urban solutions, including smart meters and efficient transport systems, are on the rise. Particularly in healthcare, IoT promises to further advance digital transformation. Forecasts indicate that the IoT healthcare market will grow to 952.3 billion USD by 2032. Digitalization enables more efficient data usage and improves patient care, potentially leading to innovative treatments. A significant growth trend is also evident in warehouse management. With the global IoT warehouse management market expected to expand from 14.8 billion in 2023 to an impressive 57.2 billion USD by 2033, there is a growing demand for better inventory control and automated processes. Technologically, Wi-Fi, Bluetooth, and cellular IoT dominate the market, with Wi-Fi accounting for 31% and Bluetooth for 25% of the increasing number of IoT connections. Particularly fascinating is the integration of Artificial Intelligence, including Generative AI and Edge AI, into IoT systems. Edge AI enables IoT devices to process data locally and respond in real-time, thereby optimizing efficiency and decision-making. In line with these trends, certain stocks are considered particularly rewarding for investors. Investors focus on companies that offer IoT solutions or manufacture corresponding hardware. Qualitative evaluations, such as those through hedge fund sentiments, help identify the promising IoT stocks. A remarkable position in this lineup is held by QUALCOMM Incorporated, a technology giant based in San Diego, which possesses key patents for 5G and 4G technologies. The strong financial results published in the third quarter of 2024 underscore the company's potential in the IoT domain. QUALCOMM is making a leap towards the future by expanding its presence in the fields of Artificial Intelligence and the automotive sector. Experts predict a revenue growth of 10% and an earnings increase of 13.10% in 2025. Despite these strong numbers, AI stocks are seen to have even greater potential for generating faster returns.