5 Best Nanotechnology Stocks to Buy Now

In this article, we shall discuss the 5 best nanotechnology stocks to buy now. To read our detailed analysis of the nanotechnology sector in 2022, go directly and see 10 Best Nanotechnology Stocks to Buy Now.

5. Analog Devices Inc. (NASDAQ:ADI)

Hedge Fund Holdings: 66

Based in Wilmington, Massachusetts, Analog Devices Inc. (NASDAQ:ADI) is an American multinational semiconductor company which focuses on data conversion, signal processing, and power management technology.

On December 9, Cowen analyst Joshua Buchalter raised the price target on Analog Devices Inc. (NASDAQ:ADI) to $200 from $190, keeping an Outperform rating on the shares. According to the analyst, the company presents one of the best and cleanest capital return stories in semis. Buchalter sees margin and capital return stability even under macroeconomic and cyclical pressure, with upside in a favorable backdrop.

Hedge fund sentiment around Analog Devices Inc. (NASDAQ:ADI) has become more favorable in the third quarter of 2022, with 66 funds long the stock, up from 61 in the preceding quarter.

4. Applied Materials Inc. (NASDAQ:AMAT)

Hedge Fund Holdings: 67

Headquartered in Santa Clara, California, Applied Materials Inc. (NASDAQ:AMAT) is an American corporation that supplies equipment, services and software for the manufacture of semiconductor chips. The company is a global leader in nanomanufacturing technology solutions with an extensive portfolio of innovative equipment.

On December 7, Loop Capital analyst Scott Graham initiated coverage of Applied Materials Inc. (NASDAQ:AMAT) with a Buy rating and a $125 price target. The analyst projects that the company’s semiconductor sales are likely to outperform the overall WFE capex, both during the current macroeconomic crisis and when the capex resolves again in Q3 of 2024.

3. Intel Corporation (NASDAQ:INTC)

Hedge Fund Holdings: 69

Based in Santa Clara, California, Intel Corp. (NASDAQ:INTC) is an American multinational corporation and technology company. The company’s IBM 2-Nanometer Chip is the world’s smallest processing chip, consisting of more than 50 billion transistors, each the size of roughly five atoms, on a space as big an average fingernail. In Q3 2022, investor interest in Intel Corp. (NASDAQ:INTC) increased as 69 hedge funds held stakes in the semiconductor chip manufacturer, up from 65 in Q2 2022.

Although the company has been undergoing a slump in 2022 due to supply-chain constraints and an unfavorable macroeconomic climate, Intel’s (NASDAQ:INTC) turnaround efforts to maximize revenue and regain market dominance are likely to be successful. Recent shifts in the geopolitical landscape are creating an enormous tailwind for the company. As the U.S, Europe, and India increasingly view China as a threat to their national security values, President Biden has unveiled plans to curb China’s economic, political, and military influence. If a conflict occurs, local semiconductor production will be critical for the West. Under the CHIPS Act, nearly $54 billion in subsidies and $24 billion in tax credits are promised, with Intel (NASDAQ:INTC) expected to capitalize upon at least $10-$15 billion.

Here is what ClearBridge Investments had to say about Intel Corporation (NASDAQ:INTC) in their Q3 2022 investor letter:

“Also on the detractor side, Intel Corporation (NASDAQ:INTC) delivered a disappointing revenue miss and lowered full-year revenue and earnings guidance as COVID-19-driven demand for PCs abated (where Intel enjoys half its sales) and a delay in its flagship Sapphire Rapids CPU hurt its data center business. Despite these issues, we still believe Intel is an economically sensitive turnaround story with substantial upside.”

2. Thermo Fisher Scientific Inc. (NYSE:TMO)

Hedge Fund Holdings: 92

Based in Waltham, Massachusetts, Thermo Fisher Scientific Inc. (NYSE:TMO) is an American supplier of scientific instrumentation, reagents, consumables, and software services.  The company is a market leader in nanoparticle research. Furthermore, the company’s Avizo Software allows for on-the-fly processing of statistics such as size, surface area, perimeter, distribution, and chemical composition of nanoparticles. Thermo Fisher Scientific Inc. (NYSE:TMO) posted an EPS of $5.08 in Q3 2022, beating estimates of $4.81 by $0.27.

On December 6, RBC Capital analyst Conor McNamara initiated coverage of Thermo Fisher Scientific Inc. (NYSE:TMO) with an Outperform rating and a $661 price target. The analyst sees the stock becoming a game-changer for future biopharma research and drug development by combining the company’s historical assets in life-science research with recent acquisitions in the CDMO, CRO, and diagnostics spaces.

Here is what Aristotle Atlantic Partners LLC had to say about Thermo Fisher Scientific Inc. (NYSE:TMO) in their Q3 2022 investor letter:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is considered one of the world’s leaders in serving science. The company makes and distributes analytical instruments, scientific equipment, consumables and other laboratory supplies. Thermo Fisher Scientific operates in four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics and Laboratory Product and Biopharma Services. We see Thermo Fisher Scientific as one of the leading management teams in our coverage both through solid execution and savvy Mergers & Acquisitions (M&A). The company is a diversified provider of research and discovery instruments, tools, consumables, and services, and offers a broad-based play on the increased Research & Development (R&D) spend from the biopharma industry. Thermo Fisher Scientific continues to see organic growth in the high single digits with acquisitions increasing their overall portfolio composition and gaining market share.”

1. Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM)

Hedge Fund Holdings: 87

Based in Hsinchu, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world’s most valuable semiconductor company, and continues to lead the technology market in nano innovation. In 2021, Taiwan Semiconductor Manufacturing Company (NYSE:TSM) produced the TSMC 3-Nanometre Chip and entered into contracts with Apple, Qualcomm, and Nvidia for the development and sale of the chips.

On November 28, Erste Group analyst Hans Engel upgraded Taiwan Semiconductor Manufacturing Company (NYSE:TSM) to Buy from Hold. According to the analyst, the company’s first fab in the U.S. positively contributes to the global diversification of its production facilities.

Here is what Wedgewood Partners had to say about Taiwan Semiconductor Manufacturing Company (NYSE:TSM) in their Q3 2022 investor letter:

“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance despite business performance that saw revenue growth accelerate to over +40% growth (in TWD) and lapped +20% revenue growth from a year ago. The Company is one of the few fabs in the world that is capable of manufacturing leading-edge integrated circuits (IC). TSM’s leading edge capacity is being absorbed by high-performance computing applications, particularly in the case of Apple, which has become an IC powerhouse over the past decade. The Company’s aggressive investment in leading-edge equipment, tight development with fabless IC designers and embrace of open development libraries, should continue to foster a superior competitive position and attractive long-term growth.”

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