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The High-Tech "Gold Rush" Officially Begins

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.

Join the conversation. Click here to jump to comments…

About the Author

Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.

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  1. Lynne Griffey | September 9, 2013

    Michael, I know nothing about the stock market. What is the least amount one could invest to take advantage of this opportunity? Thank you.

  2. Chris Ketner | September 9, 2013

    I bought SWI Solarwinds on you recommendation @ $39.63. It made money for a few weeks then took a dive. It is currently in the red. I did not place any stop loss.

    I am wondering what your position is now on SWI and what stop loss you would recommend.


  3. yngso | September 9, 2013

    Thanks! Have been afraid of getting lost in tech. Now I know a bit more!

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