There are plenty of ways for personal investors to tap into the IoT. Investors have their choice of chipmakers, hardware makers, platform companies, and software companies. But what if you’re looking to base your investment decision not on whether a company makes microcontrollers or analytics software, but rather on the level of risk you’re willing to accept?
I understand the dilemma. The Internet of Things offers us some very promising prospects, and yet there are plenty of reasons for investors to be a bit bearish as well.
Whether you’re all-in with the Internet of Things, are looking to take a balanced approach, or are very cautious about the IoT’s potential, here are three different angles you can take to invest in this growing tech trend.
Pure play all the way
For investors who are looking for exposure to the Internet of Things and little else, take a look at Sierra Wireless. The company makes wireless embedded modules for machine-to-machine devices (M2M), wireless gateways, and software to manage Internet of Things connections. ABI Research says Sierra is the top M2M company by revenue for three years running.
You can find the company’s technology in everything from Tesla’s high-end electric cars, to smart city lights in London, to Nespresso’s coffee makers. Sierra makes about 85% of its revenue from its OEM Solutions business, which includes wireless modules that connect devices and things to a carrier’s cellular networks. … (read more)