We recently published a list of 10 Worst 3D Printing and Additive Manufacturing Stocks To Buy. In this article, we are going to take a look at where Nano Dimension (NASDAQ:NNDM) stands against other worst 3D printing and additive manufacturing stocks.
The Global 3D Printing & Additive Manufacturing Market
3D printing and additive manufacturing (AM) is a technology that creates three-dimensional objects by layering materials. This technology offers a range of benefits, including the ability to use various materials such as plastics, metals, and biomaterials. It has diverse applications across engineering, healthcare, and entertainment industries and employs different processes like stereolithography and digital light processing. Notably, 3D printing enables the production of parts with high precision and reliability and allows for the creation of customized parts with intricate geometric structures.
According to a report by Precedence Research, the global 3D printing market was valued at $24.61 billion in 2024 and is expected to reach $117.78 billion by 2033, expanding at a CAGR of 19%. North America accounts for over 34% of revenue share, whereas the European market experienced the fastest growth in 2023. Europe is poised to emerge as a hub for additive manufacturing, driven by the presence of numerous industry players who possess in-depth technical expertise in additive manufacturing techniques. In terms of printer type, industrial printers led the way, generating more than 77% of total revenues. Stereolithography technology, which uses ultraviolet (UV) light to create objects from liquid resin, played a significant role, contributing over 11% of total revenues.
The 3D printing market revealed a strong presence of prototyping applications, which emerged as the largest segment, accounting for over 55% of total revenues. This indicates that the technology is being widely adopted to create prototypes, which is a critical stage in the product development process. The prototyping segment’s dominance can be attributed to the ability of 3D printing to rapidly produce complex designs, test, and iterate on them, and refine the final product. This has led to increased adoption in various industries, with the automotive sector being a prime example. The automotive vertical was the leading industry, capturing over 25% of revenue share, as 3D printing is being used to create complex car parts, tooling, and prototypes. Furthermore, the market also saw a significant contribution from metal materials, which dominated the market, accounting for over 53% of global revenue.
ARK Invest Forecasts 40% Annual Growth for 3D Printing Industry
According to Tasha Keen, Director of Investment Analysis and Institutional Strategies at ARK Invest, 3D printing will scale at a 40% annually to reach $180 billion by 2030. With its potential to disrupt industries worth over $4 trillion in revenue, Keen is confident that 3D printing will become a transformative technology that revolutionizes how industries manufacture and produce goods.
According to Keen, 3D printing is already being used extensively in prototyping, tooling, and production, with the latter being the largest addressable opportunity. The automotive industry, in particular, is embracing 3D printing, with companies such as Tesla experimenting with printing entire vehicle underbodies. The technology has the potential to simplify supply chains, reduce labour costs, and improve product strength by eliminating joints. Moreover, 3D printing can significantly reduce automotive development time and design validation costs.
Beyond automotive, 3D printing is also transforming the medical industry, enabling breakthroughs in surgeries and improving patient outcomes. Using patient-specific 3D printed tools and moulds has improved surgical accuracy and results by 40-50% and reduced operating time by 30%. While the 3D printing industry itself has grown slower than expected, Keen believes that software-enabled 3D printers will be a game-changer. These machines, equipped with sensors, can collect data on each print and send it back to manufacturers, enabling them to improve the print process over time. Keen forecasts that this could lead to higher margins for printer manufacturers and create a more sustainable business model.
The 3D printing market is poised for significant growth, driven by its diverse applications across various industries, including engineering, healthcare, and entertainment. The technology’s ability to produce parts with high precision and reliability, as well as its capacity to create customized parts with geometric structures, has made it an attractive solution for companies looking to innovate and improve their product development processes. With that in context, let’s take a look at the 10 worst 3d printing and additive manufacturing stocks to buy.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up shot of a high-performance electronic component, its details illuminated in the light.
Nano Dimension (NASDAQ:NNDM)
Short % of Float: 7.06%
Number of Hedge Fund Investors in Q2 2024: 8
Nano Dimension (NASDAQ:NNDM) is an Israeli company that designs and manufactures Additive Electronics and Additive Manufacturing 3D printing machines. The company specializes in advanced 3D printing technologies, particularly printed circuit boards (PCBs) for electronics. Its innovative technology allows for the rapid prototyping and production of electronic components, integrating conductive materials and circuits. The company serves the defence, aerospace, and automotive industries.
One of the most significant opportunities for Nano Dimension (NASDAQ:NNDM) is its ability to make strategic acquisitions in the additive manufacturing market. The company has previously stated that it has 3-5 acquisition opportunities ahead of it, with two of those being very large companies. Potential acquisition targets include companies such as Velo3D, Desktop Metal, and Markforged, which could provide the company with access to new technologies, markets, and customers.
On July 2, Nano Dimension (NASDAQ:NNDM) announced the acquisition of 2. Desktop Metal (NYSE:DM) in an all-cash transaction. The acquisition is valued at $183 million, or $5.50 per share, although the price may be adjusted downward to $4.07 per share, depending on certain conditions. The acquisition combines two companies with complementary product portfolios in the additive manufacturing (AM) industry. Nano Dimension (NASDAQ:NNDM) is a leader in 3D-printed electronics and high-performance polymer, ceramic, and metal applications, while Desktop Metal (NYSE:DM) has platforms focused on industrial-volume scale applications of metal and polymer with proprietary materials, software, and sintering solutions. The combined company will is expected to generate significant synergies and cost savings opportunities. The acquisition is expected to accelerate the industry’s transition to mass production and create a leader in the industry. The company will also have a diversified customer base, including blue-chip customers such as Amazon, Caterpillar, and Tesla, and will serve a range of industry verticals, including automotive, aerospace, defence, industrial, medical industries and R&D.
Nano Dimension (NASDAQ:NNDM) is implementing cost-cutting measures, which should move it closer to breakeven over the next 1-2 years. With a negative enterprise value, the company is well-positioned to capitalize on the weakness in the additive manufacturing market and make strategic acquisitions to drive growth and profitability. Despite 7.06% of shares being shorted, 8 hedge funds showed a bullish stance on the stock as of the second quarter and own stocks worth $60.35 million. Anson Investments is the largest shareholder in the company, holding $45.38 million worth of stock as of June 30.
Overall, NNDM ranks 5th on our list of 10 worst 3D printing and additive manufacturing stocks to buy. While we acknowledge the potential of NNDM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NNDM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.