Best nanotechnology stocks by performance as global demand for advanced materials continues to expand
Advancements in nanotechnology have resulted in new innovation across several industries including healthcare, biotechnology, manufacturing, computing and more.
According to research firm Allied Market Research, the nanotechnology market was expected to grow at a 36% compound annual growth rate between 2021 and 2030, underscoring the growing demand for advanced materials and nanoscience capabilities.
What are the top nanotechnology companies that investors and traders can gain exposure to?
What is nanotechnology?
Nanotechnology refers to the engineering and application of science at a scale between 1 nanometer to 100 nanometers. It involves the manipulation and control of materials at an atomic and molecular level. One nanometer is a billionth of a metre.
The National Nanotechnology Initiative, a US government and research development initiative, described the field thus:
“Nanoscience and nanotechnology are the study and application of extremely small things and can be used across all the other science fields, such as chemistry, biology, physics, materials science, and engineering.”
Nanotechnology is used to tailor materials to achieve specific properties of size, strength, durability, reactivity and conductivity, according to its use. Nanotechnology is utilised across various industries including electronics, computing, healthcare, energy, transportation and environmental.
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Best nanotechnology stocks
Developments in the nanotechnology field are disrupting industries and transforming global economies.
According to the World Economic Forum, breakthroughs in new-age technology fields such as nanotechnology, artificial intelligence, robotics and quantum computing were on the brink of ushering in the “Fourth Industrial Revolution”.
For investors, this presents an opportunity to gain exposure to the forefront of technological innovation. There are numerous top nanotechnology stocks listed on stock exchanges, offering access to owning a part of some of the world’s most innovative companies.
Let’s look at some of the best nanotechnology stocks to buy as we approach 2023.
Methodology
This list of the best nanotech stocks to watch is based on the S&P Kensho Extended Nanotechnology Index, which is designed to track the performance of nano-materials-producing companies and firms that provide systems, products and services that allow for construction, measurement, simulation or manipulation of nano-materials.
According to ETF provider Direxion, about 81% of the S&P Kensho Extended Nanotechnology constituents were based in the US. The rest were based in Ireland, Israel, Canada, Germany and Bermuda.
A majority of the index constituents belonged to the biotechnology and life sciences tools sector with weights of over 37% and 25%, respectively, as of September 2022.
The following nanotechnology stocks list will include the top 5 biggest S&P Kensho Extended Nanotechnology Index components sorted according to their year-to-date performance, as of 18 December 2022.
Note that stock prices are volatile hence the companies posting gains today may post losses tomorrow. Remember, past performance is not a guarantee of future returns, and always conduct your own due diligence before trading or investing.
Best nanotechnology stocks
5 best-performing nanotechnology stocks in 2022| Name | Sell | Buy | Spread | 1D Chg, % | |
|---|---|---|---|---|---|
| ALNY Alnylam Pharmaceuticals, Inc. | 149.79 | 150.76 | 0.97 | -1.270% | |
| LQDA Liquidia Technologies, Inc. | 12.12 | 12.23 | 0.11 | -1.940% | |
| BRKR Bruker | 62.88 | 63.02 | 0.14 | +0.460% | |
| NNDM Nano Dimension Ltd. | 2.36 | 2.41 | 0.05 | 0.000% | |
| BNGO Bionano Genomics, Inc. | 0.9648 | 0.9902 | 0.0254 | +1.560% |
Alnylam Pharmaceuticals
Alnylam Pharmaceuticals (ALNY) was the best year-to-date performer in 2022 among the top 5 constituents on the S&P Kensho Extended Nanotechnology Index.
Alnylam Pharmaceuticals is a biopharmaceutical company that develops ribonucleic acid interference (RNAi) therapeutics for disease with high “unmet medical need”.
“Our RNAi therapeutics are based on RNA interference, a breakthrough discovery in understanding how genes are regulated naturally within cells. Our medicines use RNAi to “silence” or turn off specific genes that cause or contribute to disease,” said the company.
The firm focuses on four main areas of genetic medicines, cardio-metabolic diseases, infectious diseases, and central nervous system (CNS) and ocular diseases.
Alnylam Pharmaceuticals is listed on the Nasdaq Stock Exchange under the ticker ALNY. In 2022, the stock has posted a year-to-date gain of over 36%, based on its 18 December close of $236.92.
Liquidia
Liquidia (LQDA) is a biopharmaceutical company focused on developing products for the treatment of pulmonary arterial hypertension, and is the first firm on our best nanotech stocks list.
The company manufactures drugs using its flagship particle engineering platform called PRINT. Liquidia’s PRINT technology enables the production of highly uniform drug particles with precise control over size, three-dimensional geometric shape and chemical composition.
According to Liquidia, setting precise physical and chemical parameters enables drug effects such as prolonged duration of drug release, increased drug loading, reduced adverse side effects, deep-lung penetration and more.
Liquidia is listed on the Nasdaq Stock Exchange under the ticker LQDA. In 2022, the stock has posted a year-to-date gain of over 15%, based on its 18 December close of $5.94.
Bruker
Bruker (BRKR) is a manufacturer of analytical and diagnostic solutions and high-performance scientific instruments.
The company produces devices that help clients observe materials at microscopic, molecular and cellular levels.
The company’s customers come from the fields of life science research, biotechnology, clinical research, microbiology, in-vitro diagnostics and material science research.
Bruker held the second-highest index weight on the S&P Kensho Extended Nanotechnology at over 10.7%, as of September 2022.
The stock is listed on the Nasdaq Stock Exchange under the ticker BRKR. As of 18 December close, Bruker posted a year-to-date loss of over 20%.
Nano Dimension
Nano Dimension (NNDM) is a company that provides additively manufactured electronics, printed electronics and micro additive manufacturing solutions.
The company’s flagship three-dimensional (3D) printing system DragonFly IV is used to create electronic circuits and related components in one step, while removing human error, eliminating toxic chemical wastes and reducing energy consumption.
Nano Dimension’s solutions are integrated with artificial intelligence (AI) technology to drive improvements and automation in manufacturing processes.
The company is based in Israel. Its American depositary shares (ADRs) are listed on the Nasdaq Stock Exchange under the ticker NNDM. In 2022, the stock has posted a year-to-date loss of over 40%, based on its 18 December close of $2.41.
Bionano Genomics
Bionano Genomics (BNGO) is a company that provides optical genome mapping solutions for genome analysis.
The company’s optical genome mapping solutions are used in diagnostic services for individuals with genetic conditions such as paediatric neurodevelopmental disorders and autism spectrum disorders.
Bionano Genomics’ flagship solution Saphyr consists of an instrument, chip consumables, reagents and software containing data analysis and visualisation tools used to identify structural changes in chromosomes.
The company is listed on the Nasdaq Stock Exchange under the ticker BNGO. In 2022, the stock posted a year-to-date loss of over 44%, based on its 18 December close of $1.8.
Final thoughts
Most nanotechnology stocks have endured a difficult period in 2022 due to the ongoing increases in interest rates. The nanotech industry is a highly capital-intensive sector which needs massive amounts of capital to fund innovation that may or may not result in sales and profits. Therefore, the stock market performance of nanotech companies can be susceptible to rising benchmark lending rates.
If you are interested in investing in some of the best nanotechnology stocks available on listed markets, it is important to conduct your own due diligence. Forecasts can be wrong.
Keep in mind that past performance is no guarantee of future returns. And never trade money that you cannot afford to lose.
FAQs
Is nanotechnology a good investment?
If you are interested in investing in nanotechnology stocks available on listed markets, it is important to conduct your own due diligence, looking at the latest news, a wide range of analyst commentary, technical and fundamental analysis. Keep in mind that past performance is no guarantee of future returns. And never trade money that you cannot afford to lose.
Will nanotechnology stocks go up?
No-one knows for certain. Stock markets are volatile and are considered risky investments. Keep in mind that past performance is no guarantee of future returns.
Should I invest in nanotechnology stocks?
Your decision to invest should be based on your research, experience, risk tolerance and other important factors. It is important to conduct your own due diligence. Keep in mind that past performance is no guarantee of future returns. And never trade money that you cannot afford to lose.
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