Who is the World’s Leading IoT Chipmaker?

Investing in disruptive technologies is incredibly difficult. First, we need to collectively agree on how to define a particular technology – like the Internet of Things (IoT). What is IoT? Well, it’s when everything around us talks to the cloud and then we use machine learning algorithms to process all that data and make things more efficient. From your microwave to your car to your house, even the city you live in will have a “digital twin.” Roughly speaking.

If we can all agree that IoT is a world where everything is connected, then it would make sense to invest in the sensors, chips, and infrastructure that will be used to connect everything to the cloud. So, we need to find pure-play stocks that are building IoT hardware and software. That’s not so easy, since you then need to attribute a company’s revenues to their IoT exposure. Some analysts think that Dexcom (DXCM), a $37 billion company that sells remote glucose monitoring devices, is a leading pure-play IoT stock. Others don’t.

Even if you find pure-play stocks to invest in, that still doesn’t mean you’re going to outperform a broader market benchmark –