Nanotechnology, the science of manipulating matter at the atomic and molecular scale, is set to revolutionize numerous industries. Larger, more established firms often overshadow many promising undiscovered nanotech stocks. This presents a unique opportunity for savvy investors to explore high-growth prospects.
The global nanotechnology market is projected to grow significantly, with estimates suggesting it could reach $332.73 billion by 2032. The technology’s diverse applications in the healthcare, electronics, energy and materials science sectors have driven growth.
As the industry matures, the companies pioneering advancements in nanotech are poised to offer substantial returns. However, these investments come with risks typical of emerging technologies. However, this is where the greatest potential for gains comes from. There may not be any prospect for gains in the stock market without a proportionate amount of risk involved.
So, investors looking for undiscovered nanotech stocks should consider adding these three in June.
Nano Dimension (NNDM)
Nano Dimension (NASDAQ:NNDM) is a prominent player in the nanotechnology sector. It focuses on developing advanced 3D printing technologies and intelligent machines to fabricate additively manufactured electronics (AME).
Nano Dimension’s primary product is its DragonFly Pro system, which utilizes conductive and dielectric nano-inks to produce high-performance electronic devices. These nano-inks enable the creation of multilayer PCBs (printed circuit boards), antennas, sensors and other functional electronic parts with high precision.
NNDM reported mixed financial results for Q1 2024, showing positive trends and ongoing challenges. The company’s revenue slightly decreased to $13.36 million from $14.97 million in the same quarter in 2023. Despite this drop in revenue, Nano Dimension managed to significantly cut its net loss to $34.8 million, down from $57.6 million the previous year. The company also achieved a notable improvement in gross margins, which rose to 46.2% from 43.9%, with an adjusted gross margin of 49.8%, up from 47.1%.
Atomera (ATOM)
Atomera (NASDAQ:ATOM) is considered a nanotech stock due to its use of nanotechnology principles in developing its proprietary Mears Silicon Technology (MST). It enhances the performance and efficiency of semiconductor devices. Atomera’s technology aims to improve the electrical characteristics of transistors, which are fundamental components in various electronic devices.
The company generates revenue primarily through licensing agreements with semiconductor manufacturers. These collaborations help integrate MST technology into commercial production.
The company made significant progress with customers across all four market focus segments last quarter and recorded a record number of commercial proposals in the last three months. Notably, Atomera saw promising results in a new product category, Compound Semiconductors.
Financially, Atomera reported a net loss of $4.8 million, or $0.19 per share, for Q1 2024, a slight improvement from the $5 million net loss or $0.21 per share, in Q1 2023. Adjusted EBITDA showed a loss of $4 million, compared to a $4.2 million loss in the same period the previous year.
Aehr Test Systems (AEHR)
Aehr Test Systems (NASDAQ:AEHR) provides test and burn-in equipment for semiconductor manufacturers. Their advanced testing systems are critical for ensuring the reliability and performance of semiconductors, which often involve nanotechnology processes.
Aehr’s test and burn-in systems detect early failures and ensure the long-term reliability of semiconductor devices. These systems apply electrical stress to components, identifying potential defects before they are integrated into end products.
Last quarter, net revenue reached $20.6 million, a 93% increase from the previous quarter. GAAP net income was $4.7 million, or $0.16 per diluted share, up from $589,000, or $0.02 per diluted share, in Q1 2023. The company reported $18.4 million in bookings and a backlog of $22.3 million. Cash provided by operations was $3.9 million.
With the rising importance of semiconductors, AEHR stock will continue to be a strong performer, and its nanotech solutions will be a money-maker for the business.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.