Nanotechnology
Five Companies Leading the Development of Nanotechnology
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We often take technology for granted; mere decades ago, the processing power and level of connectivity to information databases available through smartphones would be unfathomable. However, is it possible to maintain this pace of advancement? In order to do so, we must continually build upon our ability to design systems smaller and smaller. In 2023, this means operating on a scale dealing in nanometres.
With that in mind, the following publicly traded companies are examples of those leading the way, leveraging nanotechnology that spans from circuitry to displays, healthcare, and more.
1. International Business Machines (NYSE: IBM)
IBM has played a pivotal role in nanotechnology since its researchers invented the scanning tunneling microscope – a tool enabling the visualization of atomic structures. More recently, IBM developed a 2-nanometer semiconductor chip using nanosheet technology, which is set to enhance various widespread technologies from autonomous vehicles to IoT. The company believes that,
“As the world becomes more instrumented, with billions of transistors embedded in everything from cars to appliances to livestock, nanotechnology will play an increasingly important role in the design of future computer chips that are smaller, smarter and more energy efficient.
To achieve these performance goals, sophisticated nanotechnology processes are needed to fabricate these increasingly small transistors. Just as cells are the basic building blocks for the human body, IBM envisions a world in which nanotechnology processes are the basic building blocks for transistors and microprocessors.”
This ability to scale and approach toward nanotechnology has allowed IBM to position itself as a leader in the field.
Market Cap: $116.85B
Price to Earnings Ratio (P/E): 65.7
Earnings Per Share (EPS): $1.97
At the time of writing, IBM boasted the above metrics and is listed as a ‘Buy' among most major investment firms.
2. Applied Materials (NASDAQ: AMAT)
Applied Materials leverages its decades-long expertise in nanotechnology to provide equipment and software for semiconductor manufacturing. This includes products such as high-resolution displays, solar power, and more.
The company is particularly proficient in molecular nanotechnology, which involves the manipulation of atoms to engineer precise materials for clients around the globe. This proficiency has allowed Applied Materials to satisfy skyrocketing demand for its nanotech products, even during global chip shortages.
Source: youtube.com/watch?v=cSIkmSXmmMk
Market Cap: $120.44B
Price to Earnings Ratio (P/E): 19.33
Earnings Per Share (EPS): $7.58
At the time of writing, Applied Materials boasted the above metrics and is listed as a ‘Strong Buy' among most major investment firms.
3. Thermo Fisher Scientific Inc. (NYSE: TMO)
Thermo Fisher Scientific, a Fortune 500 company, uses nanotechnology to produce a variety of scientific instruments, reagents, and consumables. This has allowed the company to capitalize on the growing healthcare and pharmaceutical industries.
Venturing into nanotech has also positioned the company as a leader in the growing biophotonics market – a segment that could be worth in excess of $100 billion by 2027.
Market Cap: $196.00B
Price to Earnings Ratio (P/E): 33.22
Earnings Per Share (EPS): $15.34
At the time of writing, Thermo Fisher Scientific Inc. boasted the above metrics and is listed as a ‘Strong Buy' among most major investment firms.
4. Taiwan Semiconductor Manufacturing Company (NYSE: TSM)
Taiwan Semiconductor Manufacturing Company (TSMC) is a key player in the nanotech industry. It was the first to develop 22nm magnetoresistive RAM (MRAM) technology, which stores data through the use of magnetic orientation, and outpaced Intel in producing the first 7nm chip. TSMC is also increasing the production of 3nm chips for 5G devices, positioning it as a leader in consumer electronics components that support 5G technologies.
Market Cap: $522.96B
Price to Earnings Ratio (P/E): 15.78
Earnings Per Share (EPS): $6.47
At the time of writing, Taiwan Semiconductor Manufacturing boasted the above metrics and is listed as a ‘Strong Buy' among most major investment firms.
5. ASML Holding (NASDAQ: ASML)
ASML Holding is a leading semiconductor company that is involved heavily in nanotechnology. More specifically, ASML specializes in lithographic systems that use light to print patterns atop silicon wafers – a core step in the chipmaking process. ASML's work in nanotechnology is particularly notable for its development of extreme ultraviolet (EUV) lithography which is a cutting-edge technology enabling the printing of nanometer-scale features on silicon. This is an essential capability for manufacturers looking to create smaller, more powerful chips. This technology has a significant impact on various sectors, including consumer electronics and cloud computing.
Market Cap: $286.84B
Price to Earnings Ratio (P/E): 39.97
Earnings Per Share (EPS): $18.10
At the time of writing, ASML Holdings boasted the above metrics and is listed as a ‘Strong Buy' among most major investment firms.
