In this article, we will be taking a look at 7 best Nanotech penny stocks to buy.
Market Outlook and Investment Opportunities
The Federal Reserve’s recent half-point rate cut is expected to benefit small-cap stocks more than large-caps due to their floating-rate debt. Oxford Economics analysts believe small caps could thrive in easier economic conditions and with reduced borrowing costs. Eduardo Lecubarri of J.P. Morgan sees a “generational opportunity” in small to mid-cap stocks, emphasizing the importance of selecting stocks with pricing power and achievable earnings growth. With the economy stabilizing, small to mid-cap stocks offer significant investment potential.
Investors should brace themselves for further gains even as market indices flirt with record highs. Those are sentiments echoed by analysts at Goldman Sachs, who are confident of the S&P 500 powering through the 6,000 level. Earnings growth and a favorable interest rate environment are some of the factors that should lift the market heading into the year-end.
“Our forward EPS estimates reflect a steady macro outlook,” chief U.S. equity strategist David Kostin wrote. “The macro backdrop remains conducive to modest margin expansion, with prices charged outpacing input cost growth.”
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The sentiments come amid growing concerns that valuations are increasingly getting out of hand. After one of the longest Bull Runs, fueled by a resilient US economy, artificial intelligence, and earnings growth, most stocks are trading at a premium.
Nevertheless, most analysts believe there is still room for more gains as the investment environment improves. While the tech trade lost some steam over the summer, the market is still open to risk-reward opportunities, especially when counters are trading at highly discounted valuations. The tech industry rose by a partial 2.6% in the third quarter, lagging the S&P 500, up 5.5%, which signals the need to look into other sectors for investment opportunities.
While it’s becoming increasingly clear that the fourth industrial revolution will be spearheaded by artificial intelligence, robotics and quantum computing breakthroughs, nanotechnology is an emerging field that presents tremendous investment opportunities.
Nanotechnology’s Impact and Future Potential
Nanotechnology is revolutionizing industries globally, with significant applications in biomedicine, such as novel diagnostic tools, drug delivery systems, and vaccines, driven by rising chronic diseases. It also enhances clean energy through nanofluids for solar connectors and advances carbon capture with carbon nanotubes. Additionally, nanotechnology improves food security with nanoparticle-based fruit coatings, highlighting its essential role in future technological advancements.
Recent nanotechnology innovations include oxygen-releasing cryogels for tissue repair, gold liposomes for brain cancer treatment, DNA origami for optical metamaterials, stable multi-nanoemulsions, hacky sack-like nanoparticles for drug delivery, 3D cell culture structures, silicon nanoparticles for EV batteries, nano-vault silicon anodes, fireproof nanomaterials, and graphene nanoribbons for advanced nanoelectronics. Thanks to nanotechnology, several industries are undergoing a revolution that focuses on modifying atoms and molecules to produce products used in various industries.
While investors are still cautious about abandoning the tech trades that have generated significant returns over the past year, nanotech stocks trading for pennies promise to generate significant long-term returns as most are trading for pennies.
“In the third quarter we definitely saw that rotation and some of the tech leaders lagging. In the month of September alone, though, it kind of reversed a bit. … I think that particular rotation out of the big momentum stocks maybe didn’t finish the quarter as strongly as it started,” said James Ragan, director of wealth management at DA Davidson.
The global nanotechnology market, valued at $1.76 billion in 2020, is projected to reach $33.63 billion by 2030, growing at a CAGR of 36.4%, according to estimates from Allied Market Research. Key segments like the graphene market, valued at $175.9 million in 2022, are expected to grow at a 46.6% CAGR, while the lipid nanoparticle market, valued at $777.4 million in 2022, is set to grow at 13.6% CAGR through 2029.
Despite challenges like high costs and performance issues, increased government support and innovative self-powered devices offer promising opportunities, with significant research activity in the US, UK, Europe, and Asia-Pacific. The US government, through the National Nanotechnology Initiative (NNI), coordinates nanotech work across 19 agencies, aiming to enhance the economy, security, and quality of life. With a 2004 budget of $961 million, including $80 million from NIH and $2.5 million from NIEHS, the NNI supports basic and applied research, technology transfer, and understanding of social and environmental impacts. It promotes interdisciplinary research through 16 centers of excellence and programs like SBIR and STTR.
With this outlook in mind, let’s explore the best nanotech penny stocks to buy.
Source: Pexels
Our Methodology
We conducted thorough manual research to compile the list of the best nanotech penny stocks to buy. We selected nanotech stocks from various nanotechnology-focused ETFs, including ProShares Nanotechnology ETF (TINY), Global X Nanotechnology ETF (NANO), ARK Innovation ETF (ARKK), and SPDR S&P Kensho Intelligent Structures ETF (SIMS). We selected stocks trading under $5 per share with substantial exposure to nanotechnology. The stocks are ranked in ascending order based on their share price value.
At Insider Monkey, we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
7 Best Nanotech Penny Stocks to Buy
7. Nano One Materials Corp. (OTCPK:NNOMF)
Share Price as of October 7: $0.83
Number of Hedge Fund Holders: N/A
Nano One Materials Corp. (OTCPK:NNOMF) is a basic materials company and one of the best nanotech stocks to buy for exposure to producing and selling cathode active materials for lithium-ion battery applications. The company’s long-term prospects and growth metrics remain intact amid the growing demand for lithium-ion batteries amid the electric vehicle revolution.
Nano One Materials Corp. (OTCPK:NNOMF) is streamlining its operations, allowing for increased focus on lithium iron phosphate, joint ventures, contracted projects, an accelerated path to revenue generation, and growth through licensing. It is simplifying its business processes to enable a stronger emphasis on lithium iron phosphate, joint ventures, contracted projects, a quicker route to revenue generation, and expansion through licensing.
According to Dan Blondal, CEO of Nano One Materials Corp. (OTCPK:NNOMF), the company’s new strategic plan emphasizes LFP and prioritizes opportunities for future sales, commercialization, and third-party product validation at its Candiac, Québec, and manufacturing facilities. Improving Nano One’s value for its partners and stakeholders will also be greatly aided by government assistance and other non-dilutive funding sources.
The U.S. Department of Defense has already awarded the company a $12.9 million grant to expedite the production of lithium iron phosphate (LFP). Nano One Materials Corp. (OTCPK:NNOMF)’s efforts to scale its “one pot” LFP process, which is essential to creating a safe supply chain for energy storage solutions in North America, will be the main focus of the funding.
Its plant, which is currently producing 200 tons, will soon be able to make thousands of tons, increasing the company’s capacity to meet the expanding demand for LFP batteries. This is a significant step toward securing a domestic energy supply chain, considering that LFP batteries are necessary for energy storage and electric vehicles.
6. Nano Labs Ltd (NASDAQ:NA)
Share Price as of October 7: $1.05
Number of Hedge Fund Holders: N/A
Nano Labs Ltd (NASDAQ:NA) is a fabless integrated circuit design company that offers distributed computing and storage solutions, smart network interface cards, and vision computing chips, as well as distributed rendering technology. In addition, it engages in the research and development of software.
The firm is constantly enhancing its packaging technology and intellectual property to increase the productivity of chip manufacturing. It is also vigorously creating innovative AI and Zero-Knowledge computing chips. Its iPollo Metaverse’s photo studio service is gradually progressing, thanks to extensive collaboration with different institutions and organizations.
Nano Labs Ltd (NASDAQ:NA) recently converted $8.5 million in interest-free loans into Class A common shares, thereby releasing itself from any future commitments tied to these loans. Nano Labs delivered mixed financial results for the first six months of 2024.
Revenue fell to $3.47 million, mainly because of a drop in the iPollo V1 Series product sales. Nonetheless, there was a significant increase in the revenue from 3D-printing products and a 20.1% decrease in operational costs was observed. Despite these savings, the firm reported a net loss of $8.30 million.
Nano Labs Ltd (NASDAQ:NA) has been active in research and development, consequently introducing the Cuckoo 3.0 chip, which is anticipated to enhance future sales prospects. The firm is also broadening its offerings in the Metaverse and investigating possibilities in AI computing.
The company believes in future expansion opportunities with its Cuckoo 3.0 chip and services related to the Metaverse. The firm’s executives are hopeful about increased sales in the future and are concentrating on improving chip manufacturing and AI research.
5. NanoViricides Inc. (NYSE:NNVC)
Share Price as of October 7: $1.40
Number of Hedge Fund Holders: 1
NanoViricides Inc. (NYSE:NNVC) is a clinical-stage nano-biopharmaceutical company that develops and sells medications to treat viral infections. NV-CoV-2, a NanoViricides drug in phase 1a/1b clinical trials for treating Covid-19. It is one of the best nanotech penny stocks to buy for exposure in the healthcare sector.
It is one of the stocks that exploded at the height of the COVID-19 pandemic. With strong safety data for its lead candidate, NV-CoV-2, and improved liquidity measures, NanoViricides Inc. (NYSE:NNVC) reported progressing well in its antiviral drug development program. These developments position the company for future clinical trials and market expansion.
The platform technology of NanoViricides Inc. (NYSE:NNVC) provides a major advantage in stopping viral escape because it is made to resemble the cell receptors that viruses use. Additionally, the business increased its manufacturing capacity to accommodate impending clinical trials.
The company’s antiviral drug NV-387 has shown remarkable broad-spectrum activity against various virus groups in fatal animal experiments that compared NV-387 to existing medications. It has already proven to be effective against Coronavirus infection, RSV infection, and Ectromelia virus infections related to Smallpox/Mpox in animal studies.
As of the end of the second quarter of 2024, one hedge fund tracked by Insider Monkey had stakes in NanoViricides Inc. (NYSE:NNVC). The most notable stakeholder of NanoViricides Inc. (NYSE:NNVC) was Renaissance Technologies of Jim Simons, with 102,100 shares
4. NanoXplore Inc. (OTCQX:NNXPF)
Share Price as of October 7: $1.82
Number of Hedge Fund Holders: N/A
NanoXplore Inc. (OTCQX:NNXPF) is a basic materials company that manufactures and supplies graphene powder for industrial markets. It offers graphene-based solutions, including GrapheneBlack powder and graphene-enhanced masterbatch pellets. It also provides customers with standard and custom graphene-enhanced plastic and composite products in transportation, packaging, electronics, and other industrial sectors.
As demand for Graphene is rising across various sectors, NanoXplore Inc. (OTCQX:NNXPF) is in a strong position to take advantage of this trend as a top graphene provider. The unique electrical characteristics and the remarkable strength of Graphene, which is 200 times stronger than steel and 5 times lighter than aluminum, have made it a highly sought-after material.
Fortune Business Insights anticipates that the global graphene market will experience significant growth, increasing from $432.7 million in 2023 to nearly $3 billion by 2030, presenting tremendous opportunities for the company.
As NanoXplore Inc. (OTCQX:NNXPF) expands its production capabilities, it appears well-equipped to benefit from this graphene boom. Amid the strong demand for Graphene, the company delivered solid fiscal fourth-quarter results with record revenues of $38.13 million, up 14% year over year. Adjusted gross margin* on customer revenues improved to 23.6% from 20.8%. Full-year revenue also hit record highs of $130 million.
NanoXplore Inc. (OTCQX:NNXPF) has shown strength in tough market environments, hitting new sales records and growing its profit margin, which affirms why it is one of the best nanotech penny stocks to buy. As NanoXplore moves through the upcoming fiscal year, investors will pay close attention to its spending on new projects and how these efforts affect its financial results.
3. Nano Dimension (NASDAQ:NNDM)
Share Price as of October 7: $2.38
Number of Hedge Fund Holders: 8
Nano Dimension Ltd. (NASDAQ:NNDM) is one of the best nanotech stocks to buy as it engages in additive manufacturing by offering 3D printers consisting of AME systems. It also provides additive electronics robotics and control systems, which include surface-mount-technology, electronics assembly equipment for electronic components on Hi-PEDs
During the past few years, Nano Dimension Ltd. (NASDAQ:NNDM) has primarily operated as an acquirer of AM and 3D printing start-ups, using its sizable cash war chest during the pandemic-fueled market frenzy of late 2020 and early 2021.
The company has moved to strengthen its prospects in the industry with a proposed merger with Desktop Metal, Inc. (NYSE:DM) a pioneer in Additive Manufacturing 2.0. The merger is poised to strengthen its ambitions around the mass production of industrial, medical, and consumer products through its advanced 3D printing technologies.
The proposed merger is anticipated to bring together the best aspects of both businesses, combining Nano Dimension Ltd. (NASDAQ:NNDM) emphasis on additive electronics and manufacturing with Desktop Metal’s proficiency in 3D printing techniques like binder jetting and digital light processing.
The nanotech company delivered solid second-quarter results, with revenues increasing 21% year over year to $14.7 million, attributed to growth in its core business and strong performance amid active acquisitions. The sequential sales uptick suggests Nano has landed a new customer or made another significant purchase from an existing client, and investors are bullish on the news.
8 hedge funds showed a bullish stance on the stock as of the second quarter and own stocks worth $60.35 million. Anson Investments is the largest shareholder in the company, holding $45.38 million worth of stock as of June 30.
In the second quarter, eight hedge funds held long positions in Nano Dimension Ltd. (NASDAQ:NNDM), with their combined stakes valued at $60.4 million.
2. Lightwave Logic, Inc. (NASDAQ:LWLG)
Share Price as of October 7: $2.76
Number of Hedge Fund Holders: 3
Lightwave Logic, Inc. (NASDAQ:LWLG) is a key player in the nanotechnology market. It specializes in developing photonic devices and electro-optical polymer materials systems for fiber-optic data communications, optical computing, and telecommunications markets. It also creates and synthesizes organic chromophores for use in its designs of photonic devices and electro-optic polymer systems.
Lightwave Logic, Inc. (NASDAQ:LWLG) is trying to carve out a niche in the electro-optic polymers market. It has already inked a strategic collaboration with Advanced Micro Foundry (AMF) to achieve a record-breaking low drive voltage below 1V at 200 Gbps PAM4. This is anticipated to accelerate the development of 800Gbps and 1.6T pluggable transceivers and improve optical connectivity for AI computing clusters.
In order to develop a small, ultra-high bandwidth device for data centers which need cutting-edge solutions to support AI and machine learning applications, the company announced a collaboration with Swiss company Polariton Technologies.
Globally, data centers must deal with increased power consumption and a “burgeoning” demand for faster data transmission from cloud services like AI and machine learning. The ultra-high bandwidths made possible by this device are highly suitable for next-generation internet and optical networking transceivers, which call for 200 Gbps per lane now and 400 Gbps per lane in the near future.
Despite a challenging environment, Lightwave Logic, Inc. (NASDAQ:LWLG)’s impressive gross profit margin of 91.48% for the last twelve months as of Q2 2024 highlights its operations’ effectiveness and the potential value of its technology.
As per Insider Monkey’s database, 3 hedge fund portfolios held Lightwave Logic, Inc. (NASDAQ:LWLG) at the end of the second quarter, which was 4 in the previous quarter.
1. 3D Systems (NYSE:DDD)
Share Price as of October 7: $3.06
Number of Hedge Fund Holders: 15
3D Systems (NYSE:DDD) is one of the best nanotech penny stocks to buy as a leading 3D printing and digital manufacturing solutions provider. It is one of the companies that has benefited from the 3D printing industry, experiencing tremendous growth thanks to ongoing research and development that improves the technology.
Scientists are currently developing micro and nanoscale manufacturing techniques due to the overwhelming interest in 3D printing. In the realm of nanoscale 3D printing, the goal is to 3D print objects measured in nanometers.
With the use of this technology, objects can be assembled atom by atom, marking a promising advancement in additive manufacturing. Nanoscale technology can potentially improve productivity and efficiency across a range of industries, including semiconductors, medical devices, batteries, and nanorobotics, microelectronics, and sensor technologies. These industries stand to gain much from the accuracy-preserving precision of nanoscale creation.
3D Systems (NYSE:DDD) is already positioning itself for opportunities as the nanotechnology market expands. It is already expanding its footprint into the expanding market of 3D printed teeth and their alignment protection dent repair. It has already inked a $250 million contract to support the manufacturing process of clear aligners.
While 3D Systems (NYSE:DDD) delivered disappointing second-quarter results, with revenues dropping 12% year over year at $113 million, it continues to register significant growth in service revenues. Additionally, its net loss shrunk to $27.3 million from $29 million a year ago. The company expects its full-year revenue to range between $450 million and $460 million.
As of the second quarter, 15 hedge funds have taken a bullish stance on the stock, collectively holding shares valued at $18.18 million. ARK Investment Management is the largest shareholder in 3D Systems (NYSE:DDD), holding $9.45 million worth of stock as of June 30.
While we believe in DDD’s potential, we believe that certain AI stocks promise to deliver high returns within a shorter timeframe. If you are looking for an AI stock that is more promising than DDD but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.
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