Are IoT stocks a good investment?

IoT stocks can be excellent investments for a range of investors, from those seeking growth opportunities to those looking to diversify their portfolios.

Which industries use IoT technology the most?

Manufacturing companies rely on the IoT for various reasons, such as ensuring their industrial equipment operates efficiently. Meanwhile, logistics companies use the IoT to manage their fleets, as well as for other applications.

Do IoT companies pay dividends?

Most IoT-focused companies opt to reinvest capital in their businesses rather than distribute dividends to shareholders. For those intent on procuring passive income from an IoT investment, though, Cisco is a great option.

How do IoT companies generate revenue?

IoT companies generate revenue from different sources. While some businesses sell hardware, such as sensors and chips, others generate revenue from selling software that manages the IoT devices.

While some IoT stocks trade at higher valuations, there are also opportunities to invest in IoT stocks trading at valuations consistent with peers in other tech sectors.

Are there small-cap IoT stocks with high growth potential?

Impinj is a leading IoT stock that borders between small-cap and mid-cap, while Cohu (NASDAQ:COHU), with a $1.8 billion market capitalization, is a tech stock that has IoT exposure

Best Internet of Things Stocks for 2026 and How to Invest

By Scott Levine – Updated Apr 14, 2026 at 12:26 PM EST | Fact-checked by Margo Winton Parodi

Key Points

48% of U.S. homes have a smart device, signaling growth for IoT investments.
Cisco offers a stable entry to IoT, boasting $13.3B in free cash flow for fiscal 2025.
DexCom targets IoT in healthcare, projecting $5.25B in 2026 sales amid rising diabetes.

As an increasing number of everyday objects, such as lights, televisions, major appliances, cars, and even doorbells, are brought online, Internet of Things (IoT) stocks are attracting a growing number of investors. According to Horowitz Research, for example, 48% of U.S. homes have at least one smart device.

While it may sound complicated, the IoT simply refers to the networks of devices and objects that communicate with other devices in the same network via connections to data centers.

Loading paragraph...

Internet of Things refers to the online network of devices and objects that communicate with each other. — Image source: The Motley Fool.

Loading image...

Loading paragraph...

Ticker Information Table
Name and ticker	Market cap	Dividend yield	Industry
Cisco Systems (NASDAQ:CSCO)	$325.3 billion	2.00%	Communications Equipment
Alarm.com (NASDAQ:ALRM)	$2.2 billion	0.00%	Software
DexCom (NASDAQ:DXCM)	$24.3 billion	0.00%	Healthcare Equipment and Supplies
Impinj (NASDAQ:PI)	$3.2 billion	0.00%	Semiconductors and Semiconductor Equipment
Intel (NASDAQ:INTC)	$327.3 billion	0.00%	Semiconductors and Semiconductor Equipment
Samsara (NYSE:IOT)	$15.4 billion	0.00%	Software

Data as of Apr 14, 2026. Showing 6 of 6 tickers.

Loading ticker_table...

1. Cisco Systems

Loading paragraph...

NASDAQ: CSCO

Cisco Systems

Today's Change

(-0.71%) $-0.58

Current Price

$81.77

Key Data Points

Market Cap

$325B

Day's Range

$81.36 - $82.40

52wk Range

$53.83 - $88.19

Volume

230K

Avg Vol

24M

Gross Margin

63.97%

Dividend Yield

2.00%

Loading company_card...

Loading paragraph...

NASDAQ: ALRM

Alarm.com

Today's Change

(0.39%) $0.17

Current Price

$43.58

Key Data Points

Market Cap

$2.2B

Day's Range

$43.41 - $44.24

52wk Range

$41.50 - $60.76

Volume

7.6K

Avg Vol

463K

Gross Margin

63.10%

Loading company_card...

Providing a cloud-based software platform for managing connected homes and businesses, Alarm.com (ALRM +0.39%) offers subscribers software to manage internet-enabled devices, including security cameras, lights, locks, thermostats, and other supported products.

The company currently works with about 12,000 service providers in more than 80 countries, and its products are found in about 67 million properties worldwide.

Recognizing both steady top- and bottom-line growth from 2016 through 2025, Alarm.com has increased revenue at a 16.2% compound annual growth rate (CAGR) and adjusted earnings before interest, depreciation, and amortization (EBITDA) at a 17.3% CAGR.

In addition to revenue of $1.058 billion to $1.065 billion, Alarm.com projects adjusted EBITDA of $213 million to $215 million for 2026. If the company achieves the midpoints of both of these metrics, it will have recognized year-over-year growth of 5% and 4%, respectively.

Loading paragraph...

Revenue

Revenue is a business’s gross income or the amount of money it brings in from regular operations before costs are considered.

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.

3. DexCom

Loading paragraph...

NASDAQ: DXCM

DexCom

Today's Change

(-0.25%) $-0.16

Current Price

$62.96

Key Data Points

Market Cap

$24B

Day's Range

$62.12 - $63.70

52wk Range

$54.11 - $89.98

Volume

85K

Avg Vol

4.7M

Gross Margin

60.44%

Loading company_card...

The Internet of Things goes far beyond consumer devices. DexCom (DXCM -0.25%) focuses on medical devices that continuously monitor glucose levels 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. In 2023, the estimated total of individuals with diagnosed or undiagnosed diabetes in the United States reached 40.1 million.

The combination of rising diabetes rates and the transition to continuous glucose monitoring will create significant growth opportunities for DexCom in the coming years.

The company booked revenue of nearly $4.7 billion in 2025, a 16% increase over 2024, and management projects continued growth in 2026, forecasting 2026 sales of about $5.16 billion to $5.25 billion. With respect to profitability, Dexcom projects an adjusted gross profit margin of 63% to 64% and an adjusted operating margin of 22% to 23% for 2026.

For those interested in exposure to both IoT and healthcare, DexCom is a stock to consider.

4. Impinj

Loading paragraph...

NASDAQ: PI

Impinj

Today's Change

(1.45%) $1.52

Current Price

$106.23

Key Data Points

Market Cap

$3.2B

Day's Range

$105.99 - $108.00

52wk Range

$62.94 - $247.06

Volume

5.4K

Avg Vol

691K

Gross Margin

51.96%

Loading company_card...

Impinj (PI +1.45%) 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 nearly $14.6 billion in 2025, according to Markets and Markets, and it's expected to grow at a CAGR of 8.5% through 2034.

After a rough period during the COVID-19 pandemic, partly due to retail store closures, Impinj has roared back. Sales soared from $190.3 million in 2021 to $361.1 million in 2025. The company is growing profits, too. In 2025, Impinj reported adjusted EBITDA of $69.6 million, up from $65.9 million in 2024.

Impinj estimates that just 0.5% of connectable items are connected today. In the long run, trillions of consumable objects could be tracked using RFID technology. Each RFID endpoint costs only pennies, making the technology economical for a wide array of uses.

The company is far from a sure thing as an investment, but it's one to watch in the IoT space.

5. Intel

Loading paragraph...

NASDAQ: INTC

Intel

Today's Change

(-4.50%) $-2.93

Current Price

$62.25

Key Data Points

Market Cap

$327B

Day's Range

$62.09 - $65.19

52wk Range

$18.25 - $65.65

Volume

2.4M

Avg Vol

108M

Gross Margin

35.24%

Loading company_card...

IoT isn't Intel's (INTC -4.50%) core market, but the semiconductor giant's data center chips power the cloud data centers that link IoT devices. Despite rising competition, Intel still dominates the data center CPU market.

Beyond powerful chips crunching data in the cloud, Intel also sells edge computing chips with built-in AI for IoT applications that can operate in harsh, rugged conditions.

In 2015, Intel acquired Altera to expand its exposure to the IoT. In April 2025, the company sold a 51% stake in Altera, retaining the remaining 49%.

Intel also owns a majority stake in Mobileye (MBLY +2.41%), a leading developer of autonomous driving and advanced driver assistance systems. There are more than 1 billion cars on the road globally, and the fleet will become smarter and more connected.

With its sizable investments in expanding manufacturing capacity and developing its own foundry business, Intel can further tap into the growing demand for IoT devices by manufacturing the chips other companies need.

Intel isn't a pure-play IoT stock, but it has multiple ways to benefit from IoT industry growth.

Loading paragraph...

Semiconductor

A semiconductor is a basic element or compound substance that conducts electricity in certain situations.

6. Samsara

Loading paragraph...

NYSE: IOT

Samsara

Today's Change

(-0.17%) $-0.04

Current Price

$26.55

Key Data Points

Market Cap

$15B

Day's Range

$26.36 - $27.37

52wk Range

$23.38 - $48.41

Volume

103K

Avg Vol

8.5M

Gross Margin

76.74%

Loading company_card...

Loading paragraph...

Internet of Things Stocks FAQ

Loading faq...

About the Author

Scott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.

TMFProudMonkey

@TMFProudMonkey

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems and Intel. The Motley Fool recommends Alarm.com, DexCom, Impinj, Mobileye Global, and Samsara and recommends the following options: long January 2027 $65 calls on DexCom, short February 2026 $9 puts on Mobileye Global, and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.

Best Internet of Things Stocks for 2026 and How to Invest