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, like ensuring that their industrial equipment operates efficiently. Logistics companies, on the other hand, utilize the IoT to manage their fleets, as well as other applications.

Do IoT companies pay dividends?

Most IoT-focused companies opt to reinvest capital in their businesses rather than to distribute dividends to shareholders. For those who are 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.

Best Internet of Things (IoT) Stocks for 2026

Best Internet of Things Stocks for 2026 and How to Invest

By Scott Levine – Updated Jan 27, 2026 at 9:15 PM EST | Fact-checked by Frank Bass

Key Points

Nearly half of U.S. homes have at least one IoT device, expanding the market for related stocks.
Cisco leads in enterprise networking for IoT, making it a stable investment with high profitability.
Alarm.com's growth potential in smart home management reflects high revenue and EBITDA increases.

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.

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

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Ticker Information Table
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

Data as of Apr 10, 2026. Showing 6 of 6 tickers.

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1. Cisco Systems

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NASDAQ: CSCO

Cisco Systems

Today's Change

(-1.14%) $-0.95

Current Price

$82.22

Key Data Points

Market Cap

$329B

Day's Range

$81.62 - $84.56

52wk Range

$53.83 - $88.19

Volume

18M

Avg Vol

24M

Gross Margin

63.97%

Dividend Yield

1.98%

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2. Alarm.com

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NASDAQ: ALRM

Alarm.com

Today's Change

(-2.04%) $-0.89

Current Price

$42.65

Key Data Points

Market Cap

$2.2B

Day's Range

$41.92 - $43.54

52wk Range

$41.50 - $60.76

Volume

599K

Avg Vol

453K

Gross Margin

63.10%

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While Cisco's (ALRM -2.04%) market cap borders $274 billion, cloud software provider Alarm.com is valued at just a few billion. Its relatively small size makes it riskier than the tech giant, but the company has plenty of growth potential.

Alarm.com provides a cloud-based software platform for managing a connected home or business. Subscribers use the software to manage internet-enabled devices, including security cameras, lights, locks, thermostats, and a range of other supported products.

Alarm.com partners with service providers to sell its platform to consumers and businesses. The company currently works with about 12,000 service providers in more than 70 countries, and its products are found in about 67 million properties worldwide.

Recognizing both steady top- and bottom-line growth from 2016 through 2024, Alarm.com has increased revenue at a 17.4% compound annual growth rate (CAGR) and adjusted earnings before interest, depreciation, and amortization (EBITDA) at a 17.3% CAGR.

In addition to revenue of $990 million to $996.4 million, Alarm.com projected adjusted EBITDA of $195 million to $196.5 million for 2025. If the company achieved the midpoints of both of these metrics, it would have recognized year-over-year growth of 5.7% and 11.2%, respectively.

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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.

With the smart home trend here to stay, Alarm.com -- and its millions of subscribers -- is an early leader.

3. DexCom

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NASDAQ: DXCM

DexCom

Today's Change

(-2.53%) $-1.66

Current Price

$64.02

Key Data Points

Market Cap

$25B

Day's Range

$63.61 - $66.14

52wk Range

$54.11 - $89.98

Volume

2.1M

Avg Vol

4.9M

Gross Margin

60.44%

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The Internet of Things goes far beyond consumer devices. DexCom (DXCM -2.53%) 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. According to its preliminary results, DexCom booked revenue of $4.7 billion in 2025, a 16% increase over 2024. Management projects continued growth in the coming year, 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.

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

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NASDAQ: PI

Impinj

Today's Change

(-3.56%) $-3.75

Current Price

$101.72

Key Data Points

Market Cap

$3.2B

Day's Range

$100.83 - $108.00

52wk Range

$62.94 - $247.06

Volume

10K

Avg Vol

698K

Gross Margin

51.96%

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Impinj (PI -3.56%) 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 January 2025, it stated in a report of its preliminary results that it anticipates 2025 adjusted EBITDA of $16.2 million to $16.9 million, up from $15 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.

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5. Intel

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NASDAQ: INTC

Intel

Today's Change

(1.07%) $0.66

Current Price

$62.38

Key Data Points

Market Cap

$308B

Day's Range

$60.75 - $63.39

52wk Range

$18.18 - $63.39

Volume

99M

Avg Vol

109M

Gross Margin

35.24%

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IoT isn't Intel's (INTC +1.07%) 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 sells chips meant for edge computing. Its Xeon D family of processors, for example, has built-in AI for IoT applications and can operate in harsh, rugged conditions.

In 2015, Intel acquired Altera to expand its exposure to the IoT. Recently, Intel said it is exploring the spinning off of Altera and potentially holding an initial public offering (IPO) for it in the near future.

Intel also owns a majority stake in Mobileye (MBLY +0.42%), 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.

In addition to selling its own chips that serve various parts of the IoT market, Intel is pouring tens of billions of dollars into building out its manufacturing capacity and starting up its own foundry business. Intel can further tap into the growing demand for IoT devices by manufacturing the necessary chips for other companies.

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

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Semiconductor

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

6. Samsara

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NYSE: IOT

Samsara

Today's Change

(-3.65%) $-0.98

Current Price

$25.87

Key Data Points

Market Cap

$16B

Day's Range

$25.10 - $26.96

52wk Range

$23.38 - $48.41

Volume

251K

Avg Vol

8.5M

Gross Margin

76.74%

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Internet of Things Stocks FAQ

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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

Key Points

1. Cisco Systems

Key Data Points

2. Alarm.com

Key Data Points

3. DexCom

Key Data Points

4. Impinj

Key Data Points

5. Intel

Key Data Points

6. Samsara

Key Data Points

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Key Data Points

Internet of Things Stocks FAQ

Are IoT stocks a good investment?

Which industries use IoT technology the most?

Do IoT companies pay dividends?

How do IoT companies generate revenue?

1. Cisco Systems

2. Alarm.com

3. DexCom

5. Intel

6. Samsara

What to look for in IoT stocks

Related investing topics

Future of the IoT industry

FAQ

Best IoT stocks in 2026

Key Data Points

Key Data Points

Key Data Points

Key Data Points

Key Data Points

4. Impinj

How to invest in IoT stocks

Is buying IoT stocks right for you?