Internet of Things and AI - What’s the Connection?
The popularity of online stock trading is rising thanks to advancements such as user-friendly online trading platforms. But success in trading depends not on efficient trading software alone, but also on a deeper insight into stocks or industries that could hold a significant potential in the future and are therefore worth investing in. Analyst opinions are also important here.
How to Figure Out Where to Invest in IoT
One of the industries that has a lot of promise, and is generating a great deal of buzz in the investing circles, is the Internet of Things (IoT). This market has been growing to now envelop all kinds of automated technologies for products as diverse as autonomous vehicles and agricultural equipment. IoT can get confusing though, since it is a technology rather than a product. It can therefore be harder to see how it is influencing the various tech companies and how much potential this has. Figuring out which industries could be influenced by this technology could give you a clearer direction of the stocks to target. It can help investors get a better perspective.
Look for AI Stocks
Let’s look at another fast growing and promising market in connection with IoT – artificial intelligence (AI). How are these connected? Well, Motley Fool analyst Chris Neiger reports that 83% of AI chips will be used in IoT devices by 2023. According to some estimates, by 2030 the AI market could contribute $15.7 trillion to the worldwide economy. What AI is particularly involved in for all its applications is the quick processing of vast amounts of data. And this is done on devices that have not collected data before.
Now the IoT tech enables these devices – smart speakers, cars, smart watches, agricultural equipment and other devices – to gather data. But AI is needed for all that data to be processed. So IoT is dependent on AI. Neiger quotes Gartner research that states that there will be a lot of IoT information to which AI is applied. This data includes network traffic activity, sensor data, images, videos, speech, etc. That is great for AI chipmakers such as Nvidia ($NVDA) which manufactures GPUs (graphics processing units) employed in AI data processing. Neiger reckons IoT could facilitate the AI chip market to reach $91.2 billion in 2025, from just $4.5 billion in 2017.
Autonomous Vehicles and 5G Connectivity
In fact, IoT is so integral to a range of technologies that it is one of the most influential tech trends of our time. Apart from AI, IoT is also integrated with autonomous vehicles and 5G connectivity. So you have stocks such as autonomous ride-hailing provider Waymo’s parent company Alphabet ($GOOGL, $GOOG), General Motors ($GM) and 5G network provider Verizon ($VZ) to consider. In fact, IoT is bringing all these technologies together. Investing success here depends on how these companies are implementing IoT and what plans they have for the future.
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