Who Benefits Most From The Wearable Tech Boom?

Get a glimpse of what's on the tech horizon with Foolish reports from the field at the 2014 International Consumer Electronics Show. Companies ranging from start-ups to Fortune 100 launch and showcase thousands of products at the event, which attracts visitors from around the world.

Exercise trackers and other wearable fitness devices are booming right now. Of course, investors could simply buy the brands that produce the devices, but it's also worth looking at who provides the tech inside.

Even more exciting than this revolutionary technology are the incredible profits to be made from it, and when it comes to cashing in on big trends, no one is better than David Gardner. Click here now to uncover the one stock he's buying now.

A full transcript follows the video.

Austin Smith: Hey Fools, Austin Smith and Eric Bleeker here on the floor of CES 2014, doing some coverage of wearables technology. Without a doubt, Eric, this is one of the hot tech niches for 2014; a category that's kind of existed in fits and starts, but we've really seen it take off recently.

The way we're looking at it, there's a couple of different ways you can invest in this. You can invest in some of the bigger wearable brands that are backing the technology -- companies like Nike  (NYSE: NKE  ) and Under Armour  (NYSE: UA  ) and Fitbit -- but then there's also the behind-the-scenes, the picks and axes aspect of this, and there are some interesting storylines here.

There are some accelerometer companies. I'm kind of surprised to see a company like Garmin  (NASDAQ: GRMN  ) -- a company that really got written off for dead in many ways -- being a presence in a lot of these wearable tech companies, particularly for the runners and the bikers of the world.

What other sort of pick and axe companies can we expect to see, that may stand to benefit from this surge in wearable interest, over the year?

Eric Bleeker: I think definitely "picks and shovels" is a great way of looking at this, especially with accelerometers and a lot of sensors being used in these different devices. Like you said too, Nike very much out in front, but you invest in Nike ... it's just a small component of their business.

As far as some of the picks and shovels, I would look at NXP Semiconductor  (NASDAQ: NXPI  ) . It's a varied company; a lot of people bought into it originally because of a focus on NFC, but they're diversified and they have a lot of components that can go into fitness technology.

Beyond that, InvenSense  (NYSE: INVN  ) is big into accelerometers. A lot of people originally started looking at them because of something like the Nintendo Wii controller. Well, the Nintendo Wii controller -- the components of it, that is -- are now in your pocket and they're tracking you, so there's another catalyst toward the company.

Finally, I would look at STMicroelectronics  (NYSE: STM  ) . It's another company with a diversified portfolio that investors could look at to benefit from these trends.

The final area to look at, if you're an investor, is even a company like Apple  (NASDAQ: AAPL  ) itself. It now has a coprocessor in the newest iPhone 5s, in part geared toward technology, so the future battleground might be, are these discrete components in your pocket, or could your smartphone stand to benefit, and other people just track it through those means? We'll have to see.

Smith: OK. Thanks for the thoughts, Eric. Fools, for more coverage of CES 2014, make sure to head over to Fool.com. 


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2796772, ~/Articles/ArticleHandler.aspx, 9/1/2014 5:30:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement