3 Internet of Things Stocks Growing Faster Than InvenSense

One technology stock that's poised to benefit from the Internet of Things, or IoT, is InvenSense . The company makes micro-electro-mechanical system, or MEMS, gyroscopes for mobile and IoT devices, and even calls mobile juggernauts Samsung and Apple customers.

InvenSense's estimated revenue growth is at about 20%, and IHS says the MEMS market will play an "essential role" in the Internet of Things -- which could be a very good thing for InvenSense. But despite its long-term potential, InvenSense's stock is down nearly 30% over the past 12 months, leaving investors a bit disappointed right now.

Investors looking for some faster growing IoT stocks may want to take a look at these three companies outpacing InvenSense:

Ambarella : Up 140% over the past 12 monthsAmbarella is a small-cap stock that makes systems-on-a-chip (SoC) forGoPro's pervasive action cameras. Ambarella's stock is up more than 140% over the past 12 months, and 64% gross margin growth is keeping investors even happier.

Aside from its business with GoPro, the company's SoCs are used in high-end filmmaking drones, security cameras, body-worn camers, and intelligent automotive cameras. On top of that, the company's SoC can be found in Chinese device-maker Xiaomi's Xiaoyi action camera.

Looking ahead, Ambarella's CEO, Fermi Wang, said on the most recent earnings call that, "Ambarella had an exciting and prosperous year and we look forward to our continued progress in 2015 and beyond."

Skyworks Solutions : Up 150% over the past 12 monthsSkyworks makes analog and mixed signal semiconductors for Apple, Samsung, and a host of other companies worldwide. In a recent slideshow presentation Skyworks said, "IoT plays into our strengths,"and the company views it as a key area of growth in the coming year.

But Skyworks has more than just potential going for it. The company just increased revenue by 59% in Q1 2015 year-over-year, and analysts estimate 38% revenue growth for the full year.

Skyworks Solutions sees a lot of future growth in the IoT market as well. CEO David Aldrich said on a recent earnings call that the company is "a conduit into the Internet of Things," and that IoT is one of four major trends driving the company's growth.

Freescale Semiconductor (NYSE: FSL): Up 86% over the past 12 monthsFreescale makes about 45% of its revenue from microcontrollers it makes for the automotive industry, and as carmakers continually adding more tech into their vehicles Freescale is ready to profit.

Freescale CEO Gregg Lowe said on an earnings call back in January that radars, infotainment systems, semiautonomous and connected vehicles are driving a third wave of automotive innovation. Automakers' focus on tech has helped push Freescale's stock up 86% over the past year, and there's no sign of slowing down.

Light vehicle sales are expected to hit 16.9 million this year, up from 15 million in 2014, and could reach as high as 17 million for 2016. Which means that sales of Freescale's automotive microcontrollers are poised for even more growth.

Aside from its current business outlook, Freescale announced earlier this month that it will merge will fellow Internet of Things company NXP Semiconductors. The merger will make the combined company the fourth-largest semiconductor maker as as well as the top semiconductor supplier to the automotive industry. While the merger may change Freescale's stock in the short term, the big picture here is the IoT juggernaut that will emerge when both companies finally come together.

Investing in the Internet of ThingsThe Internet of Things is still in its infancy, which means the stock prices of these companies could fluctuate drastically, as investors may have noticed with Freescale over the past year. And even though InvenSense has failed to deliver for investors over the past 12 months, I'm confident the company's MEMS are still poised to benefit from the IoT market -- it may just take a bit longer for investors to see the gains.

The article 3 Internet of Things Stocks Growing Faster Than InvenSense originally appeared on Fool.com.

Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Ambarella, Apple, GoPro, InvenSense, and NXP Semiconductors. The Motley Fool owns shares of Ambarella, Apple, InvenSense, NXP Semiconductors, and Skyworks Solutions. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.