In this article, we discuss 5 best Internet-of-Things (IoT) stocks to buy now. If you want to read about some more IoT stocks, go directly to 12 Best Internet-of-Things (IoT) Stocks to Buy.
5. QUALCOMM Incorporated (NASDAQ:QCOM)
Number of Hedge Fund Holders: 73
QUALCOMM Incorporated (NASDAQ:QCOM) is an American multinational corporation with its headquarters located in San Diego, California. It is incorporated in Delaware and is primarily involved in the development of semiconductors, software, and services associated with wireless technology. The company is recognized for its ownership of crucial patents that are instrumental in the 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA mobile communication standards.
During fiscal Q3 2023, QUALCOMM Incorporated (NASDAQ:QCOM) reported an operating cash flow of more than $2.6 billion. By the end of the quarter, the company held over $6 billion in cash and cash equivalents. Additionally, QUALCOMM Incorporated (NASDAQ:QCOM) returned $893 million to its shareholders in the form of dividends. Notably, the company has consistently increased its dividends for the past 19 years. Presently, it provides a quarterly dividend of $0.80 per share, resulting in a dividend yield of 3.00% as of October 29.
By the end of this year’s June quarter, 73 out of the 910 hedge funds polled by Insider Monkey were the firm’s investors. QUALCOMM Incorporated (NASDAQ:QCOM)’s biggest investor in our database is Israel Englander’s Millennium Management as it owns $270 million worth of shares.
4. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 135
Apple Inc. (NASDAQ:AAPL), a prominent American multinational tech company, has demonstrated impressive performance in 2023, with a year-to-date gain of 36.16%. Apple Inc. (NASDAQ:AAPL)’s foray into the Internet of Things (IoT) has been methodical, gradual, and purposeful. Much of their IoT efforts can be summarized by examining the hardware they introduce, primarily the iPhone and iPad. Interestingly, the original iPhone, launched in 2007, is often regarded as the inaugural mainstream device that showcased the potential of connected sensors, effectively making it the world’s first IoT device.
Of the 910 hedge funds in Insider Monkey’s database at the end of Q2 2023, 135 funds owned stakes in Apple Inc. (NASDAQ:AAPL), up from 131 in the previous quarter. Their collective stake value is more than $194 billion. Warren Buffett’s Berkshire Hathaway owned the largest stake in the company in Q2.
3. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 225
Meta Platforms, Inc. (NASDAQ:META), operating under the brand name Meta, and previously known as Facebook, Inc. and TheFacebook, Inc., is a major American multinational technology conglomerate headquartered in Menlo Park, California. The company possesses and manages a diverse portfolio of products and services, including Facebook, Instagram, Threads, WhatsApp, and various others. Meta Platforms, Inc. (NASDAQ:META) recently introduced AI tools for image editing on Instagram, along with new chat stickers. Analysts at Barclays are optimistic that these AI-driven initiatives may contribute to increased engagement across Meta’s social apps in 2024, potentially resulting in a substantial boost to the company’s core advertising revenue, estimated at $16 billion.
As of the conclusion of the second quarter in 2023, 225 out of the 910 hedge funds tracked by Insider Monkey disclosed holdings in Meta Platforms, Inc. (NASDAQ: META). The largest stakeholder during this period was Citadel Investment Group, led by Ken Griffin.
Here’s what Rowan Street Capital said about Meta Platforms, Inc. (NASDAQ:META) in its third-quarter 2023 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): $550 billion rebound in market cap in less than a year.
A deep dive into what is driving the optimism for the stock.
It’s been exactly 11 months since we published an article: “Does a $750 billion decline in Meta’s market cap make sense?” META is up +240% since then compared to the S&P 500 advance of +13.5% over the same time period. We will examine what drove this abnormal return. But first, we can’t help but wonder: How is it possible for a trillion dollar company to first drop -75% to $268 billion in market cap and then skyrocket +250% to over $800 billion in market cap all in just less than 2 years. We are not talking about some micro-cap company here. META is the 7th largest company in the world. It is very well-known to everybody and is covered by 45+ analysts.
Are the markets really efficient when you witness this kind of a phenomenon?
Our belief is that the markets have actually become a lot less efficient over the short term with the proliferation of the internet, smart-phones, social media and effortless access to information. This is counterintuitive to what the academics teach us, but that is the way it has worked in reality. We will spare you further discussion on the efficiency of the markets as the purpose of this note was to discuss our investment in META. We wanted to share this observation and be clear that we are not exactly complaining here. Part of our job as fund managers is to exploit these market inefficiencies and drive value to the Rowan portfolio over the long run. And over the long run, the markets do a pretty good job in valuing companies…” (Click here to read the full text)
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 278
Amazon.com, Inc. (NASDAQ:AMZN) is a prominent American multinational technology company with a primary focus on various areas, including e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. AWS IoT, short for Amazon Web Services Internet of Things, is a platform provided by Amazon Web Services for the purpose of gathering and analyzing data originating from internet-connected devices and sensors. It further enables the seamless connection of this data to AWS cloud applications. Amazon.com, Inc. (NASDAQ:AMZN) has further extended its innovative use of technology by deploying a fleet of IoT-enabled robots in warehouse operations, effectively streamlining tasks such as package scanning through the use of QR codes.
On October 24, Seaport Research Partners’ analyst Aaron Kessler initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) stock, providing it with a Buy rating and setting a price target of $145. Kessler highlighted the company’s strong retail margin, attributing it to factors such as “ad momentum and fulfillment and shipment optimization.” Looking ahead to the fourth quarter, the analyst anticipates continued improvement in retail margins, expansion of Amazon Web Services, and steady growth in e-commerce.
Based on data from Insider Monkey’s database, a total of 278 elite hedge funds held positions in Amazon.com, Inc. (NASDAQ: AMZN) stock, with a collective stake value of $34.9 billion. This represents an increase from the 243 hedge funds that collectively held a stake valued at $25.7 billion previously. Notably, Chicago-based Harris Associates emerged as the most significant stakeholder in the company, with 15.6 million shares valued at $2.036 billion.
White Falcon Capital Management mentioned Amazon.com, Inc. (NASDAQ:AMZN) in its third quarter 2023 investor letter. Here is what it said:
“There are comparable narratives involving NU Holdings, Amazon.com, Inc. (NASDAQ:AMZN), and Teck Resources, to name a few holdings from the White Falcon portfolio. Amazon constructed its logistics network and cloud computing infrastructure using yesterday’s currency, but it is poised to capitalize on this network with the inflated dollars of tomorrow. In essence, we believe we hold wonderful businesses with growing revenue streams and potential for operating leverage – all at reasonable valuations.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 300
Microsoft Corporation (NASDAQ:MSFT) stands as one of the pioneering platform companies to offer a comprehensive suite of IoT (Internet of Things) solutions, encompassing IoT Software as a Service (SaaS), IoT Platform as a Service (PaaS), and fundamental IoT building components to its customers. The proficiency gained from remotely managing Windows devices has significantly contributed to the development of Microsoft’s robust Azure IoT platform.
In a recent announcement, Microsoft Corporation (NASDAQ:MSFT) unveiled its financial results for the first quarter of the 2024 fiscal year. The technology giant reported significant revenue of $56.5 billion, accompanied by a net income of $22.3 billion for Q1. This marks a remarkable increase, with revenue up by 13% and net income experiencing substantial growth of 27%. Although the Devices segment encountered some challenges in this quarter, there was a slight recovery observed in the Windows division. Notably, the cloud services and Office suite experienced substantial growth. Microsoft’s Cloud revenue soared to an impressive $31.8 billion, showcasing an impressive 24% year-over-year growth.
The company distributes a quarterly dividend of $0.75 per share, and it recently enhanced this dividend by 10% in September of the current year. This increase marks the 17th consecutive year of dividend growth for the company. As of October 29, the MSFT stock boasts a dividend yield of 0.89%.
According to Insider Monkey’s database of Q2 2023, Microsoft Corporation (NASDAQ:MSFT) was the most popular stock among hedge funds with 300 funds owning stakes in the company. These stakes have a collective value of nearly $70 billion.
You can also take a look at Jim Cramer’s Top 10 Bank Stock Picks This Year and Top 10 Oil and Gas Stocks To Buy
