Internet of Things Stocks Positioned for Growth: Three Investment Opportunities in the Connected Device Boom

The Internet of Things is reshaping how industries operate, from manufacturing floors to healthcare facilities. As IoT technology becomes increasingly embedded in devices worldwide, investors are looking at internet of things stocks as a way to capitalize on this expanding sector. The convergence of artificial intelligence, machine learning, and connected devices is creating an unprecedented opportunity landscape for growth.

According to IBM’s research, the number of IoT devices will continue accelerating over the coming years, with tens of billions of units expected to be deployed across industries. This growth trajectory is underpinned by broader adoption of IoT technologies, improved 5G infrastructure, and the development of novel applications. Importantly, AI and machine learning are becoming critical components for analyzing the vast data streams generated by these connected devices. IBM notes that businesses are increasingly using these technologies to extract actionable insights and optimize operational efficiency.

Market analysts at SNS Insider project the IoT ecosystem could reach approximately $3.37 trillion in value by 2031, signaling substantial demand for companies operating in this space. This forecast underscores why savvy investors are considering internet of things stocks as part of their portfolio strategy.

The Direct Play: Single-Stock Exposure to IoT Innovation

Samsara: AI-Powered Fleet and Operations Management

Samsara (NYSE: IOT) represents a concentrated bet on IoT and AI convergence in the enterprise software space. The company’s core strength lies in its ability to deploy AI-enhanced dash cameras and operational insights across transportation and logistics networks.

After bouncing from strong support levels around $30, Samsara recovered to $36.82, with analysts anticipating further gains toward $40 and beyond. Loop Capital’s research team initiated a buy rating on the stock, establishing a $42 price target based on the company’s extensive exposure to artificial intelligence and machine learning applications within the IoT sector.

What makes Samsara particularly compelling is the breadth of its addressable market. The platform supports “nearly endless” use cases, according to Loop Capital analysis, meaning the company’s total addressable market faces few structural constraints. This flexibility is evident in recent partnership announcements, such as the collaboration with TMS, a major logistics and transportation provider. Under this arrangement, TMS integrates Samsara’s AI Dash Cams to reduce driver mobile device usage, minimize accidents, and provide real-time in-cab alerts. The ability to retrieve video on demand also helps companies resolve liability disputes more efficiently.

The Diversified Approach: Internet of Things ETF Strategy

Global X Internet of Things ETF: Broad Sector Exposure

For investors preferring diversified internet of things stocks exposure, the Global X Internet of Things ETF (NASDAQ: SNSR) offers a compelling alternative. This fund provides access to 53 holdings across the IoT ecosystem, including semiconductor manufacturers, sensor developers, and companies building integrated solutions for smart grids, connected vehicles, and industrial applications.

The SNSR ETF carries a moderate expense ratio of 0.68%, making it cost-efficient for long-term accumulation. Since bottoming near $28 in late 2023, the fund had climbed toward $37 before settling at $34.77, still representing solid recovery potential. With SNSR trading at these levels, investors can acquire 100 shares for approximately $3,477 while gaining exposure to 45 diversified holdings.

The portfolio includes established technology leaders such as Garmin (NYSE: GRMN), which specializes in GPS and navigation systems for connected vehicles and wearables. DexCom (NASDAQ: DXCM) brings medical device expertise in continuous glucose monitoring—an increasingly IoT-dependent application. STMicroelectronics (NYSE: STM) and Lattice Semiconductor (NASDAQ: LSCC) provide foundational semiconductor components essential for IoT device functionality. Qualcomm (NASDAQ: QCOM) rounds out the mix with wireless connectivity solutions powering billions of devices.

This diversification approach allows investors to participate in internet of things stocks without concentrating risk on any single company, making it suitable for portfolios seeking sector exposure without picking individual winners.

The Turnaround Story: Aptiv’s Connected Mobility Bet

Aptiv: Positioned for Electric Vehicle and Autonomous Technology Growth

Aptiv (NYSE: APTV) operates at the intersection of IoT technology and automotive transformation, developing connected solutions for vehicles transitioning toward electric and autonomous architectures. While the company faced near-term headwinds, recent quarters signal potential recovery.

During its most recent earnings report, Aptiv delivered adjusted earnings per share of $1.16, exceeding consensus estimates of $1.01. Revenue came in at $4.901 billion, slightly below the $5.008 billion estimate, reflecting cyclical pressures in North American and European electrification adoption. However, management achieved 200 basis points of margin expansion year-over-year, demonstrating operational leverage and pricing power despite persistent labor and material cost challenges.

Kevin Clark, the company’s chief executive, highlighted the strength underlying these results, noting that Aptiv achieved growth above market despite the temporary slowdown in electrification adoption. Looking forward, the company raised its fiscal year adjusted EPS guidance to a range of $5.80 to $6.30, compared to prior consensus expectations of $5.75. While management lowered revenue guidance to $20.45-$20.85 billion from prior estimates of $21.57 billion, the EPS improvement signals margin expansion potential.

Aptiv’s long-term thesis rests on the inevitability of vehicle electrification and the proliferation of IoT sensors in connected automobiles. As global electric vehicle adoption accelerates and regulatory pressures intensify, Aptiv’s portfolio of connected solutions positions the company to capture significant value from this secular trend.

Building a Balanced Internet of Things Investment Approach

The three investment vehicles above represent different ways to access the growing Internet of Things ecosystem. A concentrated bet like Samsara offers higher growth potential but concentrated risk. The SNSR ETF provides diversification across hardware, software, and infrastructure layers of the IoT stack. Aptiv captures the automotive-specific IoT opportunity with established cash flow generation.

Together, these options allow investors to construct a portfolio aligned with their risk tolerance and conviction levels regarding IoT adoption timelines. As artificial intelligence capabilities deepen and 5G infrastructure expands globally, internet of things stocks in all segments should benefit from the secular tailwinds reshaping how devices communicate and generate value across industries.

The convergence of connectivity, processing power, and data analytics continues redefining business operations and consumer experiences. For investors seeking to position themselves within this transformation, opportunities exist across multiple internet of things stocks and strategies.