Micro-cap semiconductor Adesto Technologies (IOTS) is a little-known company that offers investors a way to play the NexGen Internet of Things (IoT) sector – an area I am very bullish on over the long term. This $144 million company’s non-volatile memory products are integral for the connection of devices, which is key as more and more devices become linkable and start speaking to one another.

The company’s latest quarterly report was strong, with earnings of $0.03 a share besting estimates by a penny and revenue growing 31% to $16.15 million, also beating the consensus. IOTS is expected to earn $0.18 a share in 2018 followed by continued growth to $0.40 a share in 2019. The bottom line is on a very high-growth trajectory and I suspect the stock will soon start to catch up to the projections.

Roller Coaster Trading

IOTS went public in October 2015, and after a quick rally higher it had a rough 2016 and eventually bottomed out around $1.50. Last year was much different, though, as the stock gained 220% from start to finish and at one point traded above $9.

This year has been a roller coaster so far. IOTS has tested important support in the $6 area (the black line) several times, but this long-term floor continues to hold strong and it appears as though the stock is getting caught up in nothing more than the broad market volatility and some normal profit-taking after a big rally.

The chart suggests that IOTS will eventually retest its all-time high of $9.20, which would represent a 30%+ gain from current prices. If it can break through resistance – a likely scenario –double-digit prices could be attained for the first time ever.

My outlook on both IOTS and the larger NexGen mega-trend of the Internet of Things is bullish. Therefore, the recent short-term weakness is providing a buying opportunity to get into a fast-growing company that is seeing both its top and bottom lines expand at well above the market average.