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Your gadgets are talking behind your back again.
Your phone, thermostat, and home security system are chatting. Eventually your refrigerator will text you an alert when you’re running low on milk. Heck, even your toaster will link up to your own personal network one day. No more burned bagels!
Our connected world is growing at an alarming rate. Folks in the industry call this massive realm of connectivity the internet of things. The network is downright massive. And it’s growing more every day.
Some folks are terrified of a future where everything they own is connected to the internet. On the other hand, technophiles are racing to get the latest internet capable trash can.
Love it or hate it, you can profit from one of the biggest internet of things trends on the market.
Unless you’re an early adopter, you probably aren’t interested in buying a brand new connected egg tray for your kitchen (yes, this product actually exists). But you can’t deny the insane growth the internet of things offers.
The numbers don’t lie. The world had 2 billion connected objects in 2006. By 2015, the internet of things had ballooned to 15 billion connected devices. By 2020, experts predict we’ll be surrounded by 200 billion connected devices (including those fancy egg trays). If these projection hold true, that’s an increase of 9,900% in just 14 years…
The internet of things isn’t just in your kitchen.
Everything from healthcare, retail, finance, and security is connected. It’s changing the game in biotech, automation, currency, virtual reality—all the major trends worth watching right now.
But when it comes to profitable investments, the latest connected gadgets aren’t your best bet. If we’re going to dig down to a solid internet of things trade, we’ll have to start thinking a little smaller…
Our answers lie in the chips.
Sensors, chips, semiconductors, and all those little silicon parts inside your electronics are the nuts and bolts that will make the internet of things tick.
One of the biggest companies behind these little gizmos and processors is Intel Corp. (NASDAQ:INTC). Intel has been on top of the internet of things game since the beginning. With three new chips and research under way for more, they’re gearing up to be one of the biggest suppliers when it comes to our connected world.
“This is an enormous industry, and Intel is poised to capture the high-margin, high-performance end,” explains our own Ray Blanco, highlighting the importance of Intel and their recent innovations in mobile processing and photonics.
Ray’s not kidding. Every tech company is in a rat race to involve their products in countless new internet of things devices. But Intel is sitting at the top. [Editor’s note: Click here to get Ray’s full report on the best ways to play this unstoppable tech trend].
The age of investing in next hot smartphone is over. Just check out Samsung and Apple’s sales. The smartphone market is completely saturated. The future is in connecting all our everyday things—not just your mobile phone. And Intel is paving the path with to huge profits.
While tech stocks have been relatively strong all year, semiconductors have been the champion industry within the sector. But even the best stocks have taken a dive during the market’s recent losing streak. Intel and the semiconductors are no exception.
Intel is poised to take a leadership role as the internet of things trend continues to heats up. But the stock isn’t exactly setting the world on fire right now. Shares started to retreat from their highs just a few weeks ago. And the stock continues to sink toward its July lows to begin the new trading month.
Intel is going to be integral in the development of the internet of things. They’re going to yield great returns in the near future as this trend develops. But we’re going to need to see shares post a meaningful bounce before we hop onboard.
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This story originally appeared in the Daily Reckoning