In this article, we will discuss the 13 Best Internet of Things (IoT) Stocks to Buy Now.
Investing in IoT stocks provides exposure to a rapidly expanding ecosystem powered by industrial automation, 5G connectivity, artificial intelligence, and smart infrastructure. With the global IoT market projected to roughly double in value by 2027, adoption is accelerating across healthcare, manufacturing, logistics, and urban development. As organizations digitize operations, connected devices are becoming essential tools for improving productivity, reducing costs, and unlocking real-time, data-driven decision-making.
One of the strongest tailwinds is sheer scale. The number of connected devices worldwide continues to climb as 5G networks expand and AI integration enhances device capabilities. In industrial settings, IoT enables predictive maintenance that reduces costly downtime, optimizes energy consumption, and streamlines supply chains through advanced tracking and analytics. In healthcare, remote patient monitoring is reshaping care delivery, while smart city initiatives are improving traffic management, utilities, and public safety. At its core, IoT is fueling a structural shift toward real-time operational intelligence, allowing businesses to act faster and more efficiently.
The opportunity spans multiple layers of the value chain, including network infrastructure and connectivity providers, industrial automation and analytics platforms, and hardware and sensor manufacturers producing connected devices. Together, these segments form the backbone of a more automated and data-centric global economy.
Risks remain, including market volatility in an evolving sector, intense competitive pressure requiring constant innovation, and concentration risk when investing in niche sub-sectors. However, as connectivity becomes foundational to modern infrastructure, IoT companies are positioned to benefit from durable, long-term digital transformation trends.
With this context in mind, here is a list of the 13 best Internet of Things (IoT) stocks to buy now.
Our Methodology
We sifted through ETFs, screeners, and online rankings to identify the best Internet of Things (IoT) stocks to buy right now. From the resultant dataset, we limited our final selection to 13 IoT companies that have recently reported noteworthy developments likely to impact investor sentiment. As these stocks are popular among analysts and elite hedge funds, we ranked those stocks in ascending order based on the number of hedge funds holding stakes in each stock as of Q3 2025. We assessed hedge fund ownership of each stock using Insider Monkey’s hedge fund database. We have used the stock’s market cap as of February 21 as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
13 Best Internet of Things (IoT) Stocks to Buy Now
13. Digi International Inc. (NASDAQ:DGII)
Number of Hedge Fund Holders: 16
Market Capitalization: $1.89 billion
On February 5, Craig-Hallum raised its price target on Digi International Inc. (NASDAQ:DGII) to $50 from $45 and reiterated a Buy rating, citing management’s confidence in acquisition integration, strong growth in its Cellular Solutions segment, and resilience following a tariff pause. The firm characterized the company’s raised fiscal 2026 guidance as potentially conservative relative to underlying momentum. The company reported a strong December quarter and March guide, and the company raised its FY26 guidance, though Craig-Hallum believes it was conservative.
That same day, Digi International Inc. (NASDAQ:DGII) reported first-quarter revenue of $122 million, exceeding consensus estimates of $115.6 million and representing 18% year-over-year growth, while setting multiple company records. Management highlighted double-digit growth in ARR, revenue, adjusted EBITDA, and adjusted EPS, supported by the addition of Jolt. For fiscal 2026, Digi guided to 23% ARR growth, 14%–18% revenue growth, and 17%–21% adjusted EBITDA growth, incorporating contributions from Particle. Second-quarter revenue is expected to be between $124 million and $128 million, with adjusted EBITDA of $31.5 million to $33 million. Full-year adjusted EPS is forecast at $0.56 to $0.59. Management emphasized embedding AI capabilities across its solutions portfolio and positioning the company to capitalize on secular growth in edge intelligence, industrial automation, and connected infrastructure. Strong recurring revenue growth and expanding AI integration support a constructive long-term outlook.
Digi International Inc. (NASDAQ:DGII), founded in 1985 and headquartered in Hopkins, Minnesota, provides IoT and machine-to-machine connectivity solutions that enable businesses to deploy and manage connected products and critical communications infrastructure.
12. Belden Inc. (NYSE:BDC)
Number of Hedge Fund Holders: 20
Market Capitalization: $5.65 billion
On February 12, Belden Inc. (NYSE:BDC) reported fourth-quarter results that exceeded expectations, with revenue of $720.12 million compared to consensus estimates of $696.97 million. Management characterized 2025 as a year of measurable progress and expanded market traction, supported by record orders and operational execution. Full-year revenue reached a record of approximately $2.7 billion, representing 10% year-over-year growth, while adjusted earnings per share of $7.54 marked a 19% year-over-year increase. Fourth-quarter adjusted EPS was a record $2.08, up 8% year over year. The company repurchased 1.7 million shares for $195 million during the year in alignment with its capital allocation priorities, underscoring confidence in long-term value creation.
Belden Inc. (NYSE:BDC) guided first-quarter 2026 revenue of $675–$690 million and adjusted EPS of $1.65–$1.75, assuming continuation of current market conditions and typical seasonality. Management noted that an approximate 2% year-over-year foreign exchange benefit should be incorporated into financial models. The outlook builds upon record 2025 performance, including fourth-quarter revenue of $720 million, adjusted EPS of $2.08, full-year revenue of approximately $2.7 billion, and full-year adjusted EPS of $7.54, alongside order growth of 12% year over year and 5% sequentially. Trailing twelve-month free cash flow totaled $219 million, and year-end net leverage stood at approximately 1.9x, compared to a long-term target of roughly 1.5x. The company retains $145 million under its current share repurchase authorization.
Founded in 1902, Belden Inc. (NYSE:BDC) designs, manufactures, and distributes comprehensive networking, security, and connectivity solutions. Its Automation Solutions segment delivers hardware and software that power industrial networks, smart factories, and process automation systems, central components of Industry 4.0. This positioning within mission-critical industrial infrastructure supports durable demand and long-term growth as enterprises continue to digitize and modernize operations.
