Over the past year, if you wanted to invest in the field of technology, semiconductors were the way to go. This trend has decreased somewhat; however, technology is still ripe for investment, specifically in the form of the chips responsible for devices controlled by the Internet of Things (IoT).
IoT refers to the interconnected, mobile controlled devices on the market for both home and industrial use. Machines we use in our everyday lives (including heating/cooling, refrigerators and showers) can now be controlled simply by launching an app on our cell phones.
As the technology for these devices becomes cheaper, more people are able to afford them, driving up demand. It’s this increase in demand that continues to make semiconductors a solid investment option.
If you’re looking to make an investment of your own, here are three companies that will likely get stronger with increased IoT growth.
Intersil Corporation (ISIL)
Intersil Corporation produces semiconductors that are primarily used in industrial roles (specifically for automotive infotainment, industrial controls and medical devices). The semiconductors are either already enabled to be used for IoT devices or will be soon.
Nvidia Corp. (NVDA)
Nvidia is practically a household name in terms of exposure. Much of the company’s recent growth is due to its automotive system (Tegra) and several technologies for artificial intelligence geared toward projects for driverless vehicles.
STMicroelectronics N.V. (STM)
A French-Italian company, STMicroelectronics works to develop the circuits used for microelectronic devices. Experts suggest STMicroelectronics could experience a sales boost over the next two quarters.