Computers and smartphones aren't the only devices connecting to the internet. Everyday objects such as lights, televisions, major appliances, cars, and even doorbells are being brought online. The Internet of Things (IoT) refers to the networks of devices and objects that communicate with other devices in the same network via connections to data centers.
What is the Internet of Things?
Although there is plenty of overlap among general technology, cloud computing, and the IoT, pure-play IoT companies are relatively rare. Any company that makes consumer electronics devices, sensors, or chips for industrial or commercial purposes has at least some exposure to IoT technology. Software platforms that manage IoT devices and cloud computing companies are also engaged with the IoT sector.
Best IoT stocks in 2025
These six top IoT stocks range from a diversified tech giant to a pure-play IoT company:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Cisco Systems (NASDAQ:CSCO) | $279.3 billion | 2.31% | Communications Equipment |
| Alarm.com (NASDAQ:ALRM) | $2.5 billion | 0.00% | Software |
| DexCom (NASDAQ:DXCM) | $27.7 billion | 0.00% | Healthcare Equipment and Supplies |
| Impinj (NASDAQ:PI) | $5.9 billion | 0.00% | Semiconductors and Semiconductor Equipment |
| Intel (NASDAQ:INTC) | $172.4 billion | 0.00% | Semiconductors and Semiconductor Equipment |
| Samsara (NYSE:IOT) | $21.9 billion | 0.00% | Software |
1. Cisco Systems
NASDAQ: CSCO
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2. Alarm.com
NASDAQ: ALRM
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Revenue
Management recognizes ample growth opportunities, identifying more than 500 million serviceable properties. Since only a small fraction of homes are currently using Alarm.com’s platform, the IoT company has a long growth runway.
With the smart home trend here to stay, Alarm.com -- and its millions of subscribers -- is an early leader.
3. DexCom
NASDAQ: DXCM
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The Internet of Things goes far beyond consumer devices. DexCom (DXCM +1.36%) is focused on medical devices used to continuously monitor glucose for diabetics. The company's G7 system delivers real-time data to smartphones and smartwatches without the need for finger sticks.
The number of people in the U.S. with diagnosed diabetes grew from 1.58 million in 1958 to 23.35 million in 2015, according to data from the Centers for Disease Control and Prevention. Today, about 38 million Americans have diabetes, and approximately 98 million American adults have prediabetes.
The combination of growing rates of diabetes and the transition to continuous glucose monitoring will give DexCom plenty of growth opportunities in the coming years. In 2024, revenue grew 11% year over year to $4 billion. Management projects continued growth in the coming year, forecasting 2025 sales of about $4.6 billion. With respect to adjusted EBITDA, Dexcom projects about $1.4 billion in 2025 -- about 27% higher than the $1.1 billion in adjusted EBITDA it reported in 2024.
DexCom has historically traded at expensive multiples, but for those willing to take on some risk to gain exposure to both IoT and healthcare, it's a stock to consider.
4. Impinj
NASDAQ: PI
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Impinj (PI +0.68%) specializes in solutions involving radio-frequency identification, or RFID. Impinj's RFID tags are used by retailers, manufacturers, and logistics companies to track inventory and assets.
The market for RFID products, including tags, readers, software, and services, was worth $12.6 billion in 2025, according to Markets and Markets, and it's expected to grow at a CAGR of more than 9% through 2033. Apparel retail is so far one of the biggest markets by volume for RFID technology, but the technology also has applications in supply chain logistics.
Impinj had a rough go of it during the COVID-19 pandemic, partly due to retail store closures, but the company has bounced back in a big way. Sales soared from $190.3 million in 2021 to $366.1 million in 2024. The company is growing profits, too. In the second quarter of 2025, it reported adjusted EBITDA of $27.6 million, up from $26.8 million during the same period in 2024.
Impinj estimates that just 0.3% of connectable items are connected today. In the long run, trillions of consumable objects, ranging from food packaging to tires, could be tracked using RFID technology. Each RFID endpoint costs only pennies, making the technology economical for a wide array of uses.
Impinj has shipped more than 100 billion RFID endpoints over its lifetime, and the number could rise substantially in the coming years. Impinj is far from a sure thing as an investment, but it's a company to watch in the IoT space.
Total spending on consumer and industrial IoT technology is expected to pass $1 trillion in 2025.
5. Intel
NASDAQ: INTC
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Semiconductor
6. Samsara
NYSE: IOT
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Related investing topics
How to invest in IoT stocks
If you think you're ready to start investing in IoT stocks, there are a few basic steps you must take.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
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