3 Stocks That Could Be the Next Big Thing in Nanotechnology

Stocks to buy

Plenty of tech buzzwords have been swirling around over the past couple of years, and nanotechnology is one of them. Nanotechnology involves tweaking matter at a molecular scale, and when things get smaller, they have a greater surface area than their size, impacting their behavior. That’s all a bit too technical, though, and all that’s relevant is that nanotechnology stocks could potentially blow up in line with the evolution of tech.

Moreover, nanotech blends incredibly well with AI, which could be massive for the tech space and related stocks. For instance, nanotech could potentially scale down the size of AI systems and make them more efficient, while AI could help improve nanotech designs. The endless possibilities add to the allure of nanotech stocks to buy.

Nanotechnology Stocks To Buy: Analog Devices (ADI)

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Analog Devices (NASDAQ:ADI) is a top semiconductor company investing heavily in nanotechnology. It boasts a massive revenue base near $11.57 billion while rewarding its shareholders with a growing dividend each year.

It’s gotten deeply involved with nanotechnology and has recently offered several products that benefit from nanoscale engineering. Moreover, it produces specific nanotech products such as the nanoDAC (Digital-to-Analog Converters) series, shedding light on the powerful impact of miniaturization. Additionally, its product range extends beyond the nanoDAC range, including amplifiers, data converters, and whatnot.

Furthermore, ADI’s founding role in MIT.nano, a leading research lab dedicated to nanoscience, reflects its leadership stance in the sector. However, investing in ADI isn’t cheap, but Tipranks’ analysts assign a 10% upside from current prices. Moreover, it comes with a solid dividend growing for the past 20 years.

Applied Materials (AMAT)

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Applied Materials (NASDAQ:AMAT) is a leading pick-and-shovel play in the semiconductor space. Over the years, it has become a juggernaut in materials engineering, growing its revenues from $9.66 billion in 2016 to $26.5 billion last year. Moreover, it posted a record free cash flow figure of $7.6 billion, which bodes remarkably well for its shareholders.

Similar to ADI, AMAT is looking to take things up a notch or two with nanotech. It has committed billions of dollars for its innovation infrastructure to expand its capacity efficiently through 2030. The Maydan Technology Center is a testament to that blueprint and the Materials Engineering Technology Accelerator (META), which aims to take nanotech to the next level. Moreover, with MIT, AMAT disbursed a grant of roughly $40 million to advance nano-fabrication equipment and competencies to MIT.nano.

IBM (IBM)

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IBM (NYSE:IBM) has spearheaded tech advancements across multiple fields, and nanotechnology is no different. In fact, Big Blue has been involved in miniaturizing technology since the 80s, with the invention of the scanning tunneling microscope. The invention led to nanometer-scale silicon transistors, which proved critical to the development of microelectronics space. These inventions effectively laid the groundwork for modern-day nanotechnology, positioning IBM as a major stakeholder in the sector’s expansion.

Fast-forward to 2023, its contribution to the sector is shown through its partnership with Micron (NASDAQ:MU) in a $10 billion chip research program in Albany. This ground-breaking collaboration is supported by a hefty $1 billion investment from New York State in developing a NanoFab Reflection facility and equipping it with a trailblazing ASML lithography machine.

Hence, IBM looks to continue pushing the boundaries of chip manufacturing while reinforcing its position in tech. On a side note, its financial performance has been impressive lately, marked by two consecutive quarters of revenue and earnings beats. Moreover, its stock has been up a healthy 30% in the past six months due to its strong quarterlies and investments in AI.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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