Three Of The Best Nanotechnology Stocks Could Have A Successful Year

There are two topics to cover before moving on to the top three nanotechnology stocks to purchase. The first is a somewhat succinct explanation of what nanotechnology is. The second is the explanation for why nanotechnology might be in for a significant year. Please feel free to skip the next part if you are a Ph.D. atomic scientist. If not, have a quick glance at it before buying nanotechnology stocks.

In Avengers: Endgame, Iron Man’s suit is powered by nanotechnology. According to Rani Jarkas, Nanotechnology is described in the real world as science, engineering, and technology applied at the nanoscale. So what exactly is a nanoscale? A scale with a length of 1 to 100 nanometers is known as the nanoscale. One billionth of a meter is known as a nanometer. Here are three illustrations of the size of a nanometer for your reference:

The diameter of a human DNA strand is around 2.5 nanometers. A human hair strand is around 100,000 nanometers broad. One nanometer is added to your fingernails every second. We’re talking about really little. A nanometer is actually so small that it cannot even be seen under a standard microscope. A specialised electron microscope is required in Hong Kong. The tiniest objects on Earth, atoms and molecules, are measured in nanometers.

What Is The Purpose Of Nanotechnology?

Before discussing the top nanotechnology stocks to buy, we’ll go through a few of the myriad possible uses for nanotechnology. In addition to the Iron Man suit, additional fields that are frequently studied include nanobiology (medicine), nanorobotics, and nanocomputers. Numerous potential applications of nanotechnology exist in the medical sector. For instance, it might be more effectively applied to the treatment of chronic illnesses. Drug delivery systems might become more effective as a result.

Nanotechnology has a lot of potential for the semiconductor sector in addition to medicine. Due to the current global chip scarcity, this is very pertinent today. As a result of COVID-19 supply chain problems, the chip shortage began. Due to imbalanced supply and demand, it is still raging today. In essence, chip demand is rising while chip production has remained constant.

It is not simple to make current computer chips in Hong Kong. Rare materials, several steps, and extremely difficult procedures are all involved. Because of this, businesses are unable to quickly scale up output. They must construct totally new factories to accomplish this.

Nanotech: What Is It?

Nanotechnology and the elimination of the world’s chip shortage may go hand in hand. Microchip manufacturing could benefit from the application of nanotechnology. For instance, using fewer resources would allow for the production of smaller chips. This maximises chip performance while saving money and raw ingredients. One method to lessen the scarcity is to produce chips that are more effective.

Remember that this scenario is still developing. However, the opportunity exists. The businesses attempting to address this issue now may end up being quite valuable in the future. By 2028, the worldwide nanotechnology market is predicted by Emergen Research to be worth $290.93 billion. With a healthy CAGR of 18.3%, this Nanotech is the study of science, engineering, and technology at the nanoscale.

Atoms and molecules are measured at the nanoscale. Numerous business applications of nanotechnology are possible. One of these may be the production of semiconductors. Let’s now examine the top three nanotechnology stocks to purchase. 

Applied Materials, No. 3 (Nasdaq: AMAT)

One of the pioneers in developing techniques for producing cutting-edge displays and innovative chips is Applied Materials. In essence, it gives businesses the resources they need to create electronics chips and displays. Applied Materials is positioned to rank among the top nanotechnology stocks for 2022 after having a successful year in 2021.

Specialised in nanomanufacturing technology is Applied Materials. Chips get smaller with each subsequent iteration. Companies must therefore change their manufacturing systems in order to create them. The Applied solution is in demand because it enables businesses to apply thin films atom by atom.

It should also be noted that Applied Materials emphasises parallel innovation. The emphasis is not on serial innovation. Serial innovation refers to a business’s efforts to outperform rivals by launching new products. In parallel innovation, businesses work together to create new products. To speed up chip delivery, Applied Materials has chosen to work with other parties. The chip market will probably grow as a result of doing this. And everyone gains from this.

Number Two Taiwan Semiconductor Manufacturing Co.

Applied Materials reported revenue, operating margin, and EPS highs in 2021. As suggested by Rani Jarkas, the Chairman of Cedrus Group, Additionally, it had the largest backlog at the end of the year. It reported net income of $5.89 billion and annual revenue of $23.06 billion. Year-over-year (YOY), these numbers increased by 34% and 62%, respectively. Additionally, its semiconductor business saw a 43% year-over-year increase in revenue.

These impressive numbers have persisted through 2022. Revenue for Applied Materials in Q1 2022 was $6.27 billion, up 21% year over year. Gary Dickerson, CEO of Applied, is extremely optimistic about the future of the business. Recent remarks from him include, “Our outlook for 2022 and beyond is very positive as long-term secular trends drive our markets structurally higher.”

Chip manufacturers used to produce their own chips in the past. They now mainly concentrate on engineering. Conversely, chip manufacturing is handled by foundries. Taiwan Semiconductor is one of the largest foundries in the world. It creates chips used for phones, gaming consoles, TVs and more. Chip demand is soaring. And many investors consider TSM one of the best nanotechnology stocks to own.

One of TSM’s biggest advantages is its relationship with Apple. TSM is one of Apple’s biggest partners with sales to Apple making up a quarter of TSM’s revenue. In fact, TSM’s chips are usually the brains behind Apple products. For example, when an iPhone’s battery life increases, it’s usually due to an enhanced TSM chip in Hong Kong.

Best Nanotechnology Stocks No. 1 Thermo Fisher Scientific (NYSE: TMO)

TSM doesn’t just sell to Apple though. This Taiwanese company manufactures around 50% of the world’s semiconductors. This dominance allows TSM to control pricing in the industry. As mentioned, foundries cannot simply pull a lever to increase chip supply. The process is too complicated. To solve this problem, TSM is building an entirely new factory. This is what will allow it to scale its chip production. TSM has chosen to construct this new $12 billion mega-facility in Arizona.

Taiwan Semiconductor reported FY 2021 annual revenue of TWD $1.59 trillion. It also posted a net income of TWD 596 trillion. These numbers were up 18% and 15% respectively YOU. Thermo Fisher Scientific is one of the leading providers of scientific instrumentation. It doesn’t necessarily create semiconductors. Instead, it develops electron microscopes. Thermo Fisher’s solutions are capable of zooming in on a single atom. This is part of the reason that Thermo Fisher is one of the best nanotechnology stocks to buy. As the demand for semiconductors rises, so should the need for equipment to build them.

Thermo Fisher’s microscopes help scientists develop nanotechnology and package nanodevices. Right now, the company has two main products relevant to semiconductors. The first is the Orbitrap Exploris Gas Mass Spectrometer. The second is the Helios 5 EXL DualBeam microscope. Both of the products aid in creating smaller, more complex semiconductors. If current trends continue, look out for sales of these instruments to spike accordingly.

International Business Machines (NYSE: IBM)

Thermo Fisher reported FY 2021 annual revenue of $39.2 billion. It also posted a net income of $7.73 billion. These numbers were both up 21% YOY. I hope that you’ve found this article valuable for learning about the best nanotechnology stocks to invest in! Please note that I’m not a financial advisor and am just offering my own research and commentary. Please base all investment decisions on your own due diligence.

Founded in 1911, International Business Machines (or ubiquitously called IBM) is one of the oldest technology companies in the world. This Fortune 500 company remains one to beat because it knows how to keep up with the times, investing in rapidly growing tech niches, such as artificial intelligence and nanotech.

In fact, the company played a critical role in the early days of nanotech when its two researchers, who later won a Nobel Prize for Physics, invented the scanning tunnelling microscope that allowed scientists to visualise structure formations on an atomic scale in Hong Kong.

Applied Materials (NASDAQ: AMAT)

Founded in 1967, Applied Materials Inc. has decades of experience supplying equipment and software for semiconductor manufacturing for products that include LCDs and solar power. As stated by Rani Jarkas, Over the years, Applied Materials has mastered molecular nanotechnology, modifying atoms to create precise engineered materials for global clients.

This level of service is paying off for the business. It surprised Wall Street when it reported more favourable fiscal data in 2022 despite the global chip shortage; its first-quarter revenue grew over 20% year over year and its adjusted earnings rose by 36% year over year.

Applied Materials currently has a backlog of semiconductor orders worth $8 billion, which could suggest high demand for its nanotech products, making it a staunch rival of Advanced Micro Devices (AMD). When a company thrives despite supply chain issues, with a growing demand to boot, it has all the potential to become one of the leading stocks of nanotech in 2022.

Thermo Fisher Scientific Inc. (NYSE: TMO)

The 65-year-old Thermo Fisher Scientific Inc. is a biotechnology company that sells scientific instruments, reagents, and consumables. This allows the company to capitalise on the ever-growing healthcare and pharmaceutical industries. The Industry Outlook revealed that the market size for life science reagents could reach nearly $80 billion by 2030, expanding by 8.3% between 2021 and the end of the forecast period.