If you've blinked in the last 14 days, you might have missed this…
ARM Holdings PLC (Nasdaq ADR: ARMH) – one of the world's dominant mobile-device chip companies – bought a small Finnish software startup called Sensinode Oy in a deal whose price wasn't reported.
And most folks shrugged it off as just another of the thousands of below-the-radar deals that companies do every year.
But this one's different.
ARM's buyout of Sensinode is the latest reminder that the single-biggest profit opportunity currently on my radar screen is about to start paying off.
And because we're talking about a $14 trillion opportunity – meaning this newly emergent tech market will actually approach the entire U.S. economy in size – I want you to see what's going on here.
I'm even going to show you the top companies I've identified…
The First Billion-Unit Year
Just last week, IDC Research announced that smartphone shipments will reach 1 billion units this year – the first-time we've hit that key threshold. That's 40% more than last year and is just the latest sign of the torrid growth we've seen in this market.
It was just two years ago that smartphone sales flirted with half a million for the first time ever, meaning shipments of this device have doubled in that span.
In short, everyone has a smartphone these days.
But what a lot of folks don't realize is that this is just the beginning of a whole new, networked world.
And for investors, it's like getting a second chance to profit from the invention of the Internet.
If you think back, the Internet revolution started with a proliferation of desktop and "laptop" PCs. Lots of investors made nice money on computers, microchips, and software.
But it was when all those PCs were strung together via the Internet that the real fortunes were made.
And that's just where we are with smartphones.
The next thing we're going to see is a big "Super Internet" that opens the door to all sorts of opportunities, including:
- "Wearable" technology like "smartwatches" or intelligent glasses.
- "Smart shirts" that can monitor your health and report right to your doctor.
- So-called "smart homes" that can be configured from afar (you could control your entertainment system, your air conditioner, or safety-monitoring systems).
- All sorts of government, industrial, medical, and e-commerce capabilities.
This ubiquitous next phase is called the "Internet of Things" (IoT) or "Internet of Everything" (IoE). And it's much closer than you might imagine.
IMS Research says there will be 30 billion connected devices by 2020. Telefonaktiebolaget LM Ericsson (Nasdaq ADR: ERIC)– one of the largest telecommunications companies on the planet – says there will be 50 billion enabled devices in place worldwide in that same time frame.
The profit potential is massive – and dwarfs anything else I'm following right now.
And one company is perfectly positioned to ride this wave.
About the Author
Michael A. Robinson is a 35-year Silicon Valley veteran and one of the top technology financial analysts working today. He regularly delivers winning trade recommendations to the Members of his monthly tech investing newsletter, Nova-X Report, and small-cap tech service, Radical Technology Profits. In the past two years alone, his subscribers have seen over 100 double- and triple-digit gains from his recommendations.
As a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs and high-profile industry insiders. In fact, he was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon. And he was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
In addition to being a regular guest and panelist on CNBC and Fox Business Network, Michael is also a Pulitzer Prize-nominated writer and reporter. His first book, "Overdrawn: The Bailout of American Savings" warned people about the coming financial collapse - years before "bailout" became a household word.
You can follow Michael's tech insight and product updates for free with his Strategic Tech Investor newsletter.