We recently compiled a list of the 12 Best Internet of Things Stocks To Buy According to Analysts. In this article, we are going to take a look at where QUALCOMM Incorporated (NASDAQ:QCOM) stands against the other IoT stocks.
Trends and Outlook for The Internet of Things Industry
According to the IOT analytics, 2024 was a poor year for the Internet of Things sector, particularly due to the headwinds from the hardware sector. As per the report published on January 15, many IoT-centric industries experienced stunted year-over-year growth. The industrial software market grew 12% year-over-year, slightly slower than the growth in 2023, whereas the industrial hardware industry experienced market declines. However, despite the slowdown the number of IoT connected devices grew around 13% year-over-year, surpassing 18 billion. In addition, the expertise spending related to IoT also increased by 10% year-over-year to reach $298 billion in 2024. The report also highlighted that the discussion on IoT remained high among leading CEO’s of the technology industry. The public relevance of the term Internet of Things remained within 30% of its all-time high in 2022.
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Moreover, another report by McKinsey & Company states that IoT can offer significant economic value potential. The report highlights that IoT can unlock $5.5 trillion to $12.6 trillion in economic value by consumer IoT products and services. McKinney & Company predicts that the most economic value of the technology will come from its deployment in industrial environments including manufacturing, health care, and other areas. Factory setting is expected to be the largest beneficiary by generating around $1.4 trillion to $3.3 trillion by 2030, or 26% of the total value. Lastly, the perceived value of IoT, the technological advancements, and the emergence of 5G in Networking are anticipated to be the prominent tailwinds for the sector.
Our Methodology
To compile the list of the 12 best Internet of Things stocks to buy according to analysts we used the Global X Internet of Things ETF. Using the ETF we aggregated a list of IoT stocks with positive analyst upside potential (at least 10%), sourced from CNN. Lastly, we ranked the stocks in ascending order of the analyst upside potential. Please note that the data was retrieved on Monday, 17th February, 2025.
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A technician testing the latest 5G device, demonstrating the company’s commitment to innovation.
QUALCOMM Incorporated (NASDAQ:QCOM)
Analyst Upside Potential: 11.48%
Qualcomm Incorporated (NASDAQ:QCOM) is a leading technology company that focuses on creating advanced wireless connectivity solutions, including 3G, 4G, and 5G technologies, as well as high-performance and low-power computing systems. In the Internet of Things sector, the company provides cutting-edge solutions that revolutionize industries by enhancing user experiences. It has recently launched a new product portfolio for Industrial IoT, focusing on edge AI and connectivity solutions for robots, drones, industrial inspection, and automation.
During the fiscal first quarter of 2025, Qualcomm Incorporated (NASDAQ:QCOM) recorded record revenue and earnings per share. While its Chipset revenue hit a record $10.1 billion, the automotive and IoT businesses also posted robust growth figures of 61% and 36% year-over-year growth. The management noted that they see a big opportunity in edge AI, which means running AI models on devices instead of the cloud. At CES 2025 the company showcased devices capable of handling complex AI tasks independently at the edge, demonstrating its progress in edge AI.
Analysts are confident in the progress Qualcomm Incorporated (NASDAQ:QCOM) has made recently. On February 11, Cody Acree, analyst at Benchmark Co., reiterated a Buy rating on the stock with a price target of $240. It is one of the best Internet of Things stocks to buy according to analysts.
Fidelity Dividend Growth Fund stated the following regarding QUALCOMM Incorporated (NASDAQ:QCOM) in its Q3 2024 investor letter:
“At the stock level, QUALCOMM Incorporated (NASDAQ:QCOM) was a major detractor, returning about -14% the past three months. The firm develops and manufactures semiconductors, software and services used in mobile phones, and other wireless technologies. On July 31, the company reported second-quarter results, and issued guidance for Q3, both of which solidly exceeded expectations. The stock slid, however, on concerns about a slow recovery for smartphones. Additionally, shares dipped this quarter in step with other semiconductor-related names.”
Overall QCOM ranks 11th on our list of the best IoT stocks to buy according to analysts. While we acknowledge the potential of QCOM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QCOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
