Many analysts put the adoption of smart cars right about where smartphones were a decade ago—just catching on and ripe for a popularity explosion, suggests growth expert Tim Begany in Investing Daily's Growth Stock Strategist.

Integrated Device Technology (IDTI) is in the thick of this major shift in transportation: the rise of smart cars with advanced electronics that allow driver assistance, hazard alerts, better security and Internet access.

But why should this mean anything to Integrated Device, which makes semiconductors mainly for cloud-based data centers, communications networks and wireless mobile device charging?

Here’s why: In December, IDTI became a force in the smart-car industry with the $307 million acquisition of ZMDI, a privately-held German semiconductor maker with a strong presence in the automotive sector.

Through ZMDI, Integrated now has many products the fast-growing smart-car market demands.

They include sensors that enhance fuel efficiency and reduce emissions, as well as perform routine functions such as heating, ventilation and air-conditioning, fuel level monitoring and anti-lock braking.

About a year ago, ZMDI introduced a multi-function automotive chip that controls the defroster, turn signal and mirror adjustments.

Meanwhile, a key factor in Integrated’s success is its leadership in the dynamic wireless charging market. Analysts project this market will expand to $13.7 billion by 2020 from $1.9 billion in 2014, a 39% compound annual growth rate.

Integrated shows strength on other fronts, too, recently announcing, for example, that a new blood sugar monitor containing the company’s sensors was approved for use in Europe by patients with diabetes.

In cloud computing, Integrated has long been the top supplier of high-performance semiconductors that speed up server performance by enhancing memory.

Anthony Stoss, an analyst at investment banking firm Craig-Hallum has a price target of $30 a share for IDTI, which implies a nearly 60% gain potential from the current price of about $19.

Our price target is even higher at $45, as we believe most analysts are underestimating the company’s growth potential with ZMDI in the fold.

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By Tim Begany, Editor of Investing Daily's Growth Stock Strategist