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3 IoT Stocks to Buy and Hold for the Next 10 Years

3 IoT Stocks to Buy and Hold for the Next 10 Years

Posted On November 30, 2021 2:22 pm
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Simply put, the Internet of Things (IoT) is where computers and other technological devices communicate with one another and exchange data over the Internet, independent of human beings.

In the future, self-driving cars will need to communicate with one another, as well as with traffic lights, pedestrian crossings, and other devices and networks to ensure that traffic proceeds smoothly and people don’t get hurt. In our homes of the future, smart appliances such as toasters, coffee makers and fridges will communicate with each other in the kitchen.

IoT also applies to webcams, printers, and wearable technology such as Apple Watches and Fitbits, not to mention routers and smart speakers such as Google Home. Essentially, IoT is the future and a select number of companies are spearheading the creation of these devices that we are now relying on more and more.

The global IoT market is expected to reach a value of $1.39 trillion by 2026, up from $761.4 billion in 2020 for a compound annual growth rate of 10.53%. As the IoT market explodes, we look at three IoT stocks to buy and hold for the next 10 years.

  • Qualcomm (NASDAQ:QCOM)
  • Cloudflare (NYSE:NET)
  • Cisco Systems (NASDAQ:CSCO)

IoT Stocks To Buy and Hold for the Next 10 Years: Qualcomm (QCOM)

San Diego, California-based Qualcomm’s stock has been on a tear lately, having risen 36% in the past month to $180 per share, off from its all-time high of $188.77.

The company, which makes semiconductors and software that powers wireless technology, especially for cell phones, has been going gangbusters lately after it issued bullish forward guidance and reassured investors that it can continue growing even as its relationship with Apple (NASDAQ:AAPL) winds down. Qualcomm supplies wireless connectivity chips for Apple’s devices but forecasts that it will only supply 20% of the chips needed for the 2023 iPhone.

The ending of the Apple relationship had Wall Street concerned, but Qualcomm recently said that it expects its entire chip business to grow at least 12% by 2024 even as its business with Apple slows to a “low single-digit” per cent of sales by the end of 2024. And Qualcomm sees much of its future business coming from IoT chips and low-power chips needed for smart appliances.

In all, the company forecasts that IoT chips will account for $9 billion of its total revenue by 2024, up from $5 billion this year. Qualcomm anticipates $27 billion in total chip sales in 2021. News that Qualcomm will be able to replace its business with Apple by ramping up its IoT chip production has powered QCOM stock higher.

Cloudflare (NET)

Since going public in September 2019, the NET stock price has increased nearly 1,000%. The website security company that is expanding into IoT security solutions has enjoyed the impressive share price appreciation because of its incredible earnings growth. In its most recent quarter, Cloudflare reported 53% year-over-year revenue growth, a 77% gross margin, and that it had nearly 1,100 customers globally. Few stocks have enjoyed as big a run this year as San Francisco-based Cloudflare. At $197.39 a share, NET stock is up 165% year-to-date, including a 7% gain in the last month.

And Cloudflare has plenty of room to continue growing. Last year…

 

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