The 3 Hottest Internet of Things (IoT) Stocks to Watch in 2024 – InvestorPlace

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Internet connectivity is rising each day as the number of smartphones and other devices increases. We’ve seen cars, smartwatches, computers and using internet connectivity for some time now. However, many other products are now linked to the internet, such as televisions, doorbells, household appliances and even light fixtures. This phenomenon is known as the Internet of Things, or IoT. As artificial intelligence proliferates, even more devices will become connected, providing a much greater array of information and services. In an AI-enabled world, the IoT is of high value for consumers and firms. Therefore, I believe that the firms which have obtained a first-mover advantage in the IoT phenomenon will be very successful. Here are three of the hottest IoT stocks to watch in 2024.

Aptiv (APTV)

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Aptiv (NYSE:APTV) develops high-tech products for automobiles. Its Aptiv Connected Services unit provides solutions for data acquisition and analysis in both pre-production and production vehicles. Among the unit’s offerings are “a range of vehicle data recorders” and data analyzation and processing software. These products all fit under the IoT umbrella.

Since automakers can charge their customers subscription fees for providing data points and data analysis, I believe that there will eventually be strong demand for Aptiv’s IoT offerings. That trend could start in 2024.

Also noteworthy is that Citi recently named APTV stock as one of its top five consumer discretionary names.

Johnson Controls (JCI)

A sign for a Johnson Controls location showing the logo and address of the company.

Source: Jonathan Weiss / Shutterstock.com

Johnson Controls (NYSE:JCI) is developing “smart buildings” that are connected to the internet and utilize AI. For example, working with Microsoft (NASDAQ:MSFT), JCI created an office building in the Persian Gulf area that allows employees to use a virtual assistant to assist with everyday tasks such as booking meetings, adjusting the building temperature and managing parking spaces.

The firm added that its tools make the building more efficient and less costly to maintain. Meanwhile, personnel throughout the building will be able to utilize AI to facilitate customer relationships, HR, procurement, administration mechanical, electrical and plumbing systems.

I believe that there will be high demand for these “smart buildings” starting this year, as they will save companies large amounts of time and money by making them more efficient and cutting their building maintenance costs.

Moreover, JCI, which sells HVAC systems, is well-positioned to benefit from the proliferation of data centers which require a great deal of cooling. The company is also poised to get a lift from new tax credits and other government incentives for heat pumps and energy-saving features in buildings.

Broadcom (AVGO)

broadcom (AVGO) logo outside office building

Source: Sasima / Shutterstock.com

Broadcom (NASDAQ:AVGO) provides chips that enable Internet of Things devices to access the internet. In June, the company unveiled its second-generation Wi-Fi 7 chip range which allows IoT offerings to access the internet while conserving their power and operating more quickly. Retailers, internet service providers, telecom carriers and smartphone makers were all testing the chip last year.

Moreover, the rapid growth of IoT should greatly increase the demand for Broadcom’s antennas, routers and optic fiber.

The growth of IoT has benefited Broadcom already, and was one of the factors behind its operating income almost quadrupling between 2019 and 2023.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

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