Intel Corporation (INTC), Cisco Systems, Inc. (CSCO): How to Invest in (the Internet of) Things

The increasing need for servers is another reason to like Intel Corporation (NASDAQ:INTC). The company currently controls 95.6% of the market. But both AMD and ARM have designs (pun intended) on the market as well. ARM Holdings plc (ADR) (NASDAQ:ARMH) is working with Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) to produce new 64-bit designs at 20nm and moving toward 15nm in the near future. Intel will need to stay one step ahead, and it looks prepared to do so with its 14nm and 10nm processes.

Getting the message

International Business Machines Corp. (NYSE:IBM) may be in talks to ditch its server business, but it plans to play an integral part in the Internet of Things. The company released a new device in April optimized to deliver messages between sensors called MessageSight.

MessageSight is optimized to process the small messages billions of smart devices send in real-time. It uses a new protocol adopted by Cisco Systems, Inc. (NASDAQ:CSCO) among other networking elites. The idea is to make smart devices respond more quickly to the data their sensors are gathering and more power efficient.

With MessageSight, International Business Machines Corp. (NYSE:IBM) is going after a market that has yet to take form. I believe the need for real-time feedback will only grow. A quick example of how this can be used is traffic condition sensors (in the roads or in cars) rerouting GPS devices in real-time or setting an alarm off earlier to wake a commuter.

Invest in the future

The Internet of Things is more than just a few cute experiments like emailing laundry machines. It’s the next wave of the internet. The growth in connected devices and sensors will only continue to accelerate, creating a deluge of data ready for processing, analyzing, and storing. The above listed companies are just a few investing ideas to take advantage of a growing trend.

Adam Levy has no position in any stocks mentioned. The Motley Fool recommends Cisco Systems, Inc. (NASDAQ:CSCO) and Intel Corporation (NASDAQ:INTC). The Motley Fool owns shares of Intel and International Business Machines Corp. (NYSE:IBM). Adam is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article How to Invest in (the Internet of) Things originally appeared on Fool.com and is written by Adam Levy.

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