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 -- and they're frequently found in American homes. According to Horowitz Research, 48% of U.S. homes have at least one smart device. 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.
Best IoT stocks in 2026
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) | $328.5 billion | 1.98% | Communications Equipment |
| Alarm.com (NASDAQ:ALRM) | $2.2 billion | 0.00% | Software |
| DexCom (NASDAQ:DXCM) | $25.3 billion | 0.00% | Healthcare Equipment and Supplies |
| Impinj (NASDAQ:PI) | $3.2 billion | 0.00% | Semiconductors and Semiconductor Equipment |
| Intel (NASDAQ:INTC) | $308.3 billion | 0.00% | Semiconductors and Semiconductor Equipment |
| Samsara (NYSE:IOT) | $15.6 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
Key Data Points
NASDAQ: PI
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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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What to look for in IoT stocks
Just as there are various ways to gain IoT exposure, investors should look for different things in IoT stocks. While all companies should be reporting increases in revenue, investors should recognize that more established companies may be growing revenue at a slower rate than younger companies.
For companies offering software-as-a-service (SaaS), like Alarm.com, investors will want to see that the company has achieved a high SaaS revenue retention rate, indicating that customers are happy with the company's offerings and are maintaining their relationships. Similarly, investors will want to look for companies that report strong ARR, as Samsara does, as another green flag.
Perhaps the most favorable quality for investors to see in IoT stocks is strong free cash flow. Since many IoT companies don't require consistently hefty capital expenditures, they're far more capable of generating free cash flow than companies in other industries. While Intel hasn't generated positive free cash flow recently, it's worth remembering that the company's IoT exposure is far less than some of the other companies on this list.
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Future of the IoT industry
For those questioning whether there's much growth opportunity left for companies specializing in the IoT, the answer is a resounding yes. According to research from business intelligence provider IoT Analytics, the number of connected devices totaled about 21 billion at the end of 2025 and is expected to soar to 39 billion in 2030, representing a 13.2% CAGR.
Unsurprisingly, perhaps the greatest tailwind for the IoT right now is artificial intelligence (AI). From the increasingly advanced ability of generative AI to aggregate data that IoT devices produce and present it to users in a simplified manner to the advantages of using AI in edge computing, the growth potential for the IoT is substantial.
FAQ
Internet of Things Stocks FAQ
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