Big tech trends like artificial intelligence dominate the headlines. But some niche games like the Internet of Things (IoT) offer significant potential despite lower hype, according to tech investor Richard Clode. Clode, a fund manager at Janus Henderson Investors, named NXP Semiconductors and Impinj as two IoT stocks he sees as long-term winners. He manages the $3.2 billion Horizon Global Tech Leaders Fund, which is invested in both stocks. One IoT technology he sees making headway is radio frequency identification (RFID) for supply chain tracking. RFID uses small wireless chips to track inventory and assets. It was hailed in the early 2000s as a breakthrough in supply chain visibility. But the technology back then was too expensive and unreliable. The NXPI PI 1Y Series “The best time to invest in technology is when they’ve just gone through a period of terror where no one wants to talk about that technology and because everyone’s burned out,” Clode said, pointing to the lull in IoT news right now after taking the headlines five or six years ago. With costs reduced, performance improved, and after years of experimentation, Walmart and UPS are deploying RFID on a large scale to tag shipments. “Walmart is using RFID in clothing and is now authorizing all of their suppliers in most categories: ‘If you want to supply Walmart, you have to tag every item,'” Clode told CNBC’s “Pro Talks,” highlighting the technology’s pervasiveness. He added: “We’re seeing a lot of this technology; they’re real, they’re growing rapidly, and they’re driving much more efficiency across the supply chains at these retailers.” “I think it’s a great example of how we see the real side of the Internet of Things, or Smarter Cities happening, rather than the kind of generic and vague term, and no specifics behind it.” Clode said NXP and Impinj are the dominant RFID chip makers today that will benefit from this trend. Their specialty chips can transmit information wirelessly without the need for batteries or lines of sight making them ideal for supply chain applications. The US-listed Dutch multinational NXP Semiconductor is the more prominent company best known for its automotive microchips, with a market capitalization of $58 billion. Impinj focuses exclusively on RFID chips and has a smaller valuation of $2.4 billion. Analysts’ consensus price target is for a 45% gain over the next 12 months for the stock.