Nanotech involves working with tiny particles which are about the size of molecules. This field is being used to improve products in many different industries, like electronics, medicine, and energy. By manipulating matter at this tiny scale, materials and devices with special properties can be made. The global nanotech market was valued at $3.69 billion in 2022 and is projected to grow at a 33.1% CAGR from 2023 to 2030, as reported by Grand View Research. This is driven by the increased use in medical diagnostics and imaging, technological advancements, substantial R&D funding, and the creation of advanced materials for healthcare, electronics, aerospace, textiles, transportation, manufacturing, and agriculture.
In 2022, nanodevices dominated the nanotech market, accounting for over 58% of global revenue. This was due to their potential in healthcare (targeted drug delivery, imaging, diagnostics, regenerative medicine) and electronics (smaller transistors, memory devices, sensors). Nanosensors, which are crucial for nanoscale detection and measurement across many industries, are projected to grow. Healthcare and pharmaceuticals led applications in 2022, with over 26% market share. This was driven by the increased use of nanotech in areas like surgical nano-robots, nano-diagnostics, and targeted drug delivery, as well as rising chronic disease prevalence and surgical procedures. The automobile segment is also expected to grow due to nanotech’s improvements in materials, energy efficiency, safety, and functionality.
While the nanotech industry as a whole holds promise, it is still in its early innings and many companies are in the small-cap territory. With that, let’s take a look at the 7 best nanotech penny stocks to invest in.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top nanotech stocks under $5. We then selected the 7 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in 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 Invest in
7. NanoXplore Inc. (OTC:NNXPF)
Number of Hedge Fund Holders: NA
Share Price as of February 11: $1.75
NanoXplore Inc. (OTC:NNXPF) is a nanotech company that manufactures and supplies nanomaterials like graphene powder and graphene-enhanced products for various industrial markets. Its offerings include graphene-based solutions, graphene-enhanced plastics and composites, and silicon-graphene-enhanced Li-ion batteries for electric vehicles and grid storage.
The company’s advanced materials segment, which is centered on graphene-enhanced products, is its primary growth engine. This segment achieved an adjusted EBITDA of $1.51 million in FQ1 2025, which was a substantial increase from $171,000 last year. The company is expanding its advanced materials segment, particularly in the US, to meet the demand for graphene-enhanced composites. These investments are supported by existing customer contracts. Total revenue in FQ1 reached $33.7 million, recording a 16% year-over-year increase.
While expansions are underway in Canada and the US, which promise future growth, the near-term revenue for FY25 is projected between $140 million and $155 million. This reflects a slowdown in demand from two large customers and the US expansion coming online late in the fiscal year.
6. Nanobiotix (NASDAQ:NBTX)
Number of Hedge Fund Holders: 1
Share Price as of February 11: $3.9
Nanobiotix (NASDAQ:NBTX) is a clinical-stage nanomedicine company that develops nanoparticle-based cancer treatments. Its core focus is the NBTXR3 nanomedicine platform. This technology centers around functionalized hafnium oxide nanoparticles designed for direct tumor injection. This enhances radiotherapy for various cancers, which include soft tissue sarcoma and head and neck cancers.
Once injected, these nanoparticles are activated by radiotherapy, which triggers significant tumor cell death at the targeted site. This localized cell death is believed to stimulate a broader and systemic anti-cancer immune response. NBTXR3 is currently being investigated across a range of solid tumor types. These include head and neck cancers, pancreatic cancer, and lung cancer. The therapy is being evaluated as a standalone treatment and in combination with immune checkpoint inhibitors.
A study is the ongoing Phase 3 NANORAY-312 trial which targets head and neck cancer. This is a step towards regulatory submission and eventual commercialization. The company has partnered with Janssen (a global licensee) for the global co-development and commercialization of NBTXR3. Financially, as of September 30, 2024, Nanobiotix (NASDAQ:NBTX) reported €53.2 million in cash and cash equivalents. This funding will support operations into the fourth quarter of 2025.
5. NanoViricides Inc. (NYSEAMERICAN:NNVC)
Number of Hedge Fund Holders: 1
Share Price as of February 11: $1.3
NanoViricides Inc. (NYSEAMERICAN:NNVC) is a clinical-stage nanobiopharmaceutical company that develops antiviral drugs. Its Nanoviricide platform technology uses nanotech to target and treat various viral infections. These include RSV, influenza, and COVID-19, with candidates ranging from oral formulations to injectable and inhaled treatments.
The company’s broad-spectrum antiviral drug candidate, NV-387, is its major focus. This drug is designed to mimic features of host cells and target viruses in a way that makes it difficult for them to mutate and escape its effects. NV-387 has shown promising activity against a variety of viruses in preclinical studies. These include MPOX/Smallpox, RSV, Influenza, and COVID. It has demonstrated superior activity compared to existing influenza drugs in animal models.
The company has completed a Phase Ia/Ib clinical trial in healthy subjects, with no reported adverse events. It’s now preparing to initiate Phase II clinical trials, prioritizing MPOX infection in Central Africa and RSV infection in the USA. As of September 30, 2024, NanoViricides Inc. (NYSEAMERICAN:NNVC) had ~$3.87 million in cash and cash equivalents. While it raised additional funds since the reporting period, the company publicly stated that its current funding is not sufficient to complete the planned Phase II trials through November 14, 2025.
4. Clene Inc. (NASDAQ:CLNN)
Number of Hedge Fund Holders: 2
Share Price as of February 11: $4.52
Clene Inc. (NASDAQ:CLNN) is a clinical-stage pharmaceutical company that develops novel clean-surfaced nanotech (CSN) therapeutics. Its lead candidate, CNM-Au8 is a gold nanoparticle suspension. It’s being investigated for neurodegenerative diseases like ALS and Parkinson’s, as well as optic neuropathy. It’s also developing silver and zinc-based nanoparticle treatments for infectious diseases and wound healing.
It has a lot of focus on CNM-Au8, which is a nanomedicine designed to treat neurodegenerative diseases by improving mitochondrial health and protecting neuronal function. It’s an oral suspension of gold nanocrystals. The company’s immediate priority is securing regulatory approval for CNM-Au8 in amyotrophic lateral sclerosis (ALS). To support its approval, Clene Inc. (NASDAQ:CLNN) is gathering additional data, specifically focusing on Neurofilament Light (NfL) biomarker data. This data is being collected from ongoing Expanded Access Protocols (EAPs) and the HEALEY ALS Platform Trial. The company plans to submit an NDA for ALS in mid-2025.
The company reported $14.6 million in cash, cash equivalents, and marketable securities as of Q3 2024. Following this reporting period, Canaccord analyst Sumant Kulkarni reduced the company’s price target from $86 to $83 in November, while maintaining a Buy rating. Canaccord cited the lack of information about the Q3 meeting’s outcome as a factor to watch, as it could impact the stock price in the near term.
3. Lightwave Logic Inc. (NASDAQ:LWLG)
Number of Hedge Fund Holders: 3
Share Price as of February 11: $1.7
Lightwave Logic Inc. (NASDAQ:LWLG) develops nanotech-enabled photonic devices and electro-optical polymer materials for fiber-optic communications and optical computing. It designs and synthesizes organic chromophores for its electro-optic polymer systems, which align with nanotech applications. These are used in modulators and polymer photonic integrated circuits for converting electrical signals to optical signals.
The company has a unique electro-optic (EO) polymer technology. These polymers are designed to transmit data at much higher speeds while using less power, all within a smaller device footprint. This is an advantage in today’s data-intensive world. The company is using these polymers to develop next-generation photonic devices. These devices convert data from electrical signals into light (optical) signals. This conversion is essential for high-speed data transmission, with key applications in telecommunications and GenAI.
A significant achievement for Lightwave Logic Inc. (NASDAQ:LWLG) is demonstrating drive levels below 0.5V with its EO polymer modulators. This is an improvement in performance and power efficiency, making its technology attractive for data centers. The company had $27 million in cash and cash equivalents as of September 30, 2024. This funding is sufficient to support its operations through February 2026.
2. Nano Dimension Ltd. (NASDAQ:NNDM)
Number of Hedge Fund Holders: 10
Share Price as of February 11: $2.62
Nano Dimension Ltd. (NASDAQ:NNDM) provides nanotech-enabled additive manufacturing solutions, which include 3D printers for electronics, polymers, ceramics, and metals. Its offerings range from inkjet systems for printing electronic components to digital light processing printers for polymer and composite parts, and foil-based systems for ceramic and metal fabrication. It also provides related robotics, control systems, software, and proprietary materials like nanoparticle inks and slurries.
The primary revenue driver for the company, before recent acquisitions, is its nanotechnology-based Additively Manufactured Electronics (AME) solutions. This technology focuses on printing electronics onto various surfaces. The AME segment achieved record Q3 2024 revenue of $15 million, a 22% jump year-over-year. The company also dramatically reduced its cash burn within the AME segment, from $16 million per quarter last year to just $3 million. This improvement came after a reduction in staff, proving that cost-cutting didn’t hurt growth.
Key customer wins with major companies like Applied Materials, the University of Dayton, and a leading aerospace and defense company demonstrate the growing market demand for Nano Dimension Ltd.’s (NASDAQ:NNDM) AME technology. Combined with the potential of the recent acquisitions, the company is well-positioned for growth.
1. 3D Systems Corp. (NYSE:DDD)
Number of Hedge Fund Holders: 21
Share Price as of February 11: $4.43
3D Systems Corp. (NYSE:DDD) is a nanotech company that offers 3D printing and digital manufacturing solutions globally. It provides 3D printing technologies, which include stereolithography, selective laser sintering, and direct metal printing, along with a variety of print materials and digital design tools. It benefits from advancements in micro and nanoscale manufacturing methods within the 3D printing industry.
Its core business is additive manufacturing, which includes both metal and polymer 3D printing. In Q3 2024, the company’s revenue was flat compared to the previous quarter. This is because customers were spending less on new 3D printing systems due to economic uncertainty. However, sales of consumables (materials used in the printers) grew by about 10% year-over-year. This shows that existing customers used their 3D printers more. The company’s industrial application group, which helps customers develop new uses for 3D printing, also saw revenue surge by 26% year-to-date in Q3.
3D Systems Corp. (NYSE:DDD) made some technology advancements. These include improvements in printing high-purity copper (important for cooling semiconductors) and a faster photopolymer 3D printing platform called the PSLA 270. It also announced a deal with Sauber Motorsports (an F1 racing team), who added 10 new 3D Systems printers to their facility.
In the last days of January, the company’s stock surged 24% after announcing a partnership with Daimler Buses and Wibu-Systems. Their combined solution lets Daimler’s partners and customers 3D-print spare parts (like pins, covers, and inserts) locally for underhood and cabin applications, which reduces part acquisition time by up to 75%. This eliminates multi-week waits for parts. Daimler Buses will license the solution.
While we acknowledge the growth potential of 3D Systems Corp. (NYSE:DDD), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so 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.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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