Think about how cities have evolved over time. Many of the old European cities still have stone walls surrounding them. The walls were built to protect the citizens and keep invaders out.
Back then, life pretty much revolved around what happened within those walls. There wasn’t much direct contact with the outside world.
Boy have things changed.
In the United States, we have seen a big movement into cities in the last few decades. In 1790, only about one in every 20 Americans lived in urban areas. Fast forward to today and that statistic has grown to an astounding four out of every five Americans living in urban and suburban areas.
The urbanization of America has caused cities to morph into large information hubs. We now stand on the edge of a true transformation. We are closer than ever to the “smart cities” of the future.
These cities are in the infancy stages, and more connectivity will lead to more efficient urban areas. From lighting to traffic controls to all types of public transportation, the way you view a city in the future will be very different from today.
Smart cities will bring more of the Internet of Things (IoT), 5G, artificial intelligence, big data, autonomous vehicles and so much more. There are plenty of ways to play this shift, and today I’d like to talk about what I believe are two of the best opportunities right now.
2 Ways to Play the Shift
When it comes to the IoT, it is all about sensors. Devices that connect to each other and to the internet must have sensors in order to relay information back and forth.
One of the leaders in this space is Impinj (NASDAQ:PI). The company makes sensors for RAIN RFID, which is a technology that will be used in nearly every industry in the future.
Impinj has sold more than 15 billion sensor chips since its inception. And as the number of devices connected to the IoT increases in the coming decades, the company’s sales have the potential to skyrocket.
The second name I like in this space is Nvidia (NASDAQ:NVDA), a stock you may be more familiar with. It has ties to the entire smart city, which makes it kind of like a “catch-all” investment. NVDA is a leading edge semiconductor company that supplies chips to the artificial intelligence, big data, autonomous vehicles and plenty of other related industries.
The stock got crushed in the fourth quarter of 2018 and lost more than half of its value. It has started to rebound since as the market has found its footing, but it still has room to rally another 85% just to get back to its early October all-time high.
I expect it to get there, which makes the pullback a huge opportunity to build a position in this well-known chipmaker.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today.