In its broadest sense, the Internet of Things (IoT) means anything that can be connected to the internet. Think your bread toaster, wearable items, your fridge and even your dog collar all connected to the internet. 

The idea behind IoT is that the internet is seamlessly integrated into the physical world. This makes it possible to gather information, analyze it and make better decisions. 

But IoT isn’t just for the household setup. Industries have adopted IoT technologies for all manners of applications, including smart manufacturing and supply chain management.

Enterprise IoT spending is expected to cool in the latter half of this year before heating up again in 2025, with an anticipated annual growth rate of 15% through 2030.

In short, the long-term growth prospects for IoT are bright, and businesses and investors will reap tidy dividends going into the future. 

Here are the hottest IoT stocks to buy right now. 

PTC (PTC)

PTC (NASDAQ:PTC) has surged over 20% and up to over 30% at various points during the past year. At its current price of $177.22, its shares are up 21% year-on-year (YOY) compared to the S&P 500’s 19% jump. 

In its last quarter, PTC hauled in $603 million in revenue — an 11.2% jump from the year prior and 4.6% more than estimates. And its EPS came at $1.46, topping predictions by 20%.

Now, PTC is gearing up to release its second quarter report, for which analysts expect it to maintain its streak of topping estimates. In the last two reports, PTC has consistently outperformed earnings forecasts. It averaged a 17.16% beat in the past two quarters. 

PTC is a software development company whose suite of portfolio solutions handles data throughout a product’s lifecycle for its customers. The Boston-based firm supports an industrial IoT platform that lets companies build mission-critical IoT solutions securely. 

Impinj (PI)

Impinj (NASDAQ:PI) has been on the up in the last year and shows no signs of stopping. Investors who bought into the company at a time like this last year have a 142% return on their portfolio, while those who got in early this year have an 84% bounce on their portfolio.

Impinj continued to impress with its second-quarter results released on July 24. It blasted through estimates with earnings per share (EPS) of $0.83 — exceeding the $0.74 estimate — and revenue of $102.50 million, which was 5.10% above a $97.52 million forecast.

The company also broke its record across other metrics, with revenue topping $100 million, adjusted EBITDA surpassing $26 million and free cash flow over $44 million. 

Impinj is an IoT company that aims to provide “boundless IoT.” Its platform lets customers wirelessly link everyday objects to the internet and helps identify, track and protect them. It also provides data for inventory, asset management and shipment verification for partners. 

Semtech (SMTC)

Semtech (NASDAQ:SMTC) is a semiconductor, IoT and cloud solutions provider. The South California-based company runs two IoT business segments: IoT Systems and IoT Connected. 

The former segment makes and sells products that help businesses connect and manage devices, manage data and make better decisions, with the latter segment offering services like wireless connectivity and cloud services to help customers set up and run their applications. 

Recent internal drama in the company, which saw CEO Paul Pickle abruptly booted, caused the stock to plunge 20% in June and it has not recovered since. 

However, when you zoom out of the short-term volatility, you’ll see Semtech is very much in play as one of the best IoT stocks at the moment.

Before that upheaval, shares of the company were up nearly an impressive 90% year-to-date. What’s more, Wall Street analysts appear unfazed by the temporary wrinkle and overwhelmingly rate Semtech stock a Buy. 

On the date of publication, Hope Mutie did not have (either directly or indirectly) any positions in the stocks mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com’s Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.