11 Nanotech Penny Stocks to Consider

Published on July 11, 2023 at 10:06 am by Fahad Saleem in Hedge Funds, News

In this article, we will take a look at the 11 nanotech penny stocks to consider. To see more such companies, go directly to 5 Nanotech Penny Stocks to Consider.

Nanotechnology and its applications have evolved rapidly over the past few years. The idea that materials can be manipulated at atomic and molecular levels has fascinated scientists. Companies have already started using nanoscience and nanotechnology applications to make products that provide a lot of comfort and use for customers. From sunglasses to textiles, from sports equipment to electronics products, nanotechnology is showing its marvels everywhere.

Nanotechnology is already affecting a variety of products and technologies around us. According to a report by OECD, venture capitalists had already invested about $1 billion in nano companies by 2004. Half of those investments came in 2003 and 2004.

The OECD report had quoted data from Lux Research which had predicted that sales of products using nanotechnology will increase from just 0.1% of global manufacturing output to 15% in 2014 to total about $2.6 trillion. Fast forward by nine years and we can imagine the progress nanotechnology has made over all these years. Lux Research in a 2007 report listed some actual products in the market that were made possible due to nanotechnology. These products included Freescale magnetoresistive memory (MRAM), Wilson Double Core tennis balls, 3M Adper Single Bond Plus dental adhesive, Laufen Gallery washbasin with Wondergliss, Behr NanoGuard Mildew-resistant paint, and the list goes on and on.

If we were to list top ten technologies or ideas that are going to define the future of human civilization, you will find nanotechnology in the list for sure, given the idea’s powerful implications. In its 2015 report entitled Investing in the Future, KMPG talks about various technologies and concepts that have promising opportunities for investors. The report also talks about nanotechnology. The report at that time quoted data which said that the nanotechnology industry had 15 percent per annum growth forecast from 2003-2015. In addition to businesses, countries from the developed world are pouring a lot of resources in nanotechnology to unlock and use its true potential. According to a report by ACS Nano, the US federal budget for nanotechnology surpassed $1.8 billion per year for the last 2 years as of 2021. The report said that Canada’s Natural Sciences and Engineering Research Council invested a whopping $432 million in nanotechnology between 2010 and 2019. The Netherlands’ federal government funded NanoNextNL, the national program in nanotechnology, with a whopping €250 million investment from 2011 to 2017. Similarly, Japan also invested billions of dollars in the nanotechnology space.

The ACS report also talked about “Society 5.0” – an ideal human society from the future where humans and devices will be interconnected via Internet of Things and data and necessary information is shared via AI and other advanced technologies. The report discussed why nanotechnology will play a key role in the development of such futuristic societies:

“Nanotechnology and materials are expected to play important roles in the realization of Society 5.0. Nanotechnology will drive the digital transformation by providing diverse nanodevices to be used in Society 5.0, such as IoT sensors, autonomous driving vehicles, smart robots, and others. Nanotechnology and materials are also expected to contribute to the realization of a sustainable society through ensuring water purification,17 reducing CO2 emissions, and promoting material circulation with recycling approaches. Nanotechnology and materials also support our health and well-being through wearable biosensors and biomaterials for regenerative medicine.”

Applications of Nanotechnology

Perhaps the most important area where nanotechnology can make a difference is healthcare and biotech. Over the past few years the term “Nanobiotechnology” has gained a lot of popularity. The ACS report talks about how nanotechnology can solve challenges of providing healthcare to aging population. Nano devices can be used for diagnostics, drug discovery and medical treatment. Nano devices can also be used for virus inactivation using photocatalysis nanoparticles.

Nanotechnology in Semiconductors and Batteries

But currently, the biggest opportunity in the nanotechnology space remains in the semiconductor industry. Companies are funding promising nanotech startups that are working on disruptive technologies. Recently, a Massachusetts-based startup Impact Nano raised about $32 million in funding. Key investors included Intel Capital and Goldman Sachs Asset Management. Impact Nano makes specialty chemicals for the semiconductor industry.

Investments in the space got a boost as the US plans to spur growth in the semiconductor production segment via its CHIPS and Science Act. Another key area nanotechnology is creating opportunities in is the battery industry. Amid the EV boom, more and more companies are looking for ways to pack more energy in battery packs. California-based company Sila Nanotechnologies is a notable name in this regard. Several companies including Amperex Technology Limited, BMW and Daimler have partnered with Sila Nanotechnologies. In 2021, the company raised a whopping $590 million in a Series F funding round led by Coatue. Sila Nanotechnologies at the time said that it will use the funds to develop a new North American 100 GWh plant to produce its silicon-based anode material and serve smartphone and automotive customers.

Photo by Joshua Mayo on Unsplash

Our Methodology

For this article we used stock screeners, employed manual research and scoured nanotechnology-related research reports to find 11 penny stocks operating in the nanotechnology space. All of these stocks are priced under $10, except one, which we included because of its relatively low price (under $15) and significant nanotech exposure.