NEW YORK (TheStreet) -- NetGear (NTGR) CEO Patrick Lo has grown tired of all the breathless talk about cloud computing bolstering the prospects of Internet security stocks. In Lo's view, the next really big thing will be the 'Internet of Things.'
"We've heard so much about the 'Connected Home', we've heard about Wi-Fi connected smoke detectors and cameras, as well as thermostats," Lo said in an interview. "That's the beginning of the connected home, the 'Internet of things.' And we believe absolutely in the next two, three years, that will become more and more popular, and that will drive more and more sales of interconnecting devices such as ours."
Lo is betting that such focus can revive the fortunes of a stock price that has gained 2.8% over the past 12 months while the Nasdaq surged 31%.
Netgear's chief rival, Cisco (CSCO) hasn't fared much better, rising just 1% over the same period. Yet while Cisco is concentrating on connecting 'things' in the office, Lo's company is looking at the home as it looks to design new gear. One such product, called the 'Nighthawk,' is designed to prioritize Internet speeds according to type of device.
The Nighthawk tri-band router, which is based on Broadcom's (BRCM) XStream technology, is expected to be available this summer.
"What it does is provide three lanes of traffic," Lo said. "The very slow one for the very slow devices, the mid-range and the high-end for the Netflix (NFLX), or for the gamers you can go to the higher speed without being bogged down by the slowest speed devices. It's a breakthrough and it's the precursor for the real Internet of things at home."