If the prospect of controlling computers and robots with brainpower alone excites you, neurotech stocks are right up your alley. Unfortunately, today’s top neurotech company — Elon Musk’s Neuralink — remains off-limits to retail investors. But that doesn’t mean there isn’t plenty of opportunity elsewhere in public markets.

Neurotech stocks are in a somewhat tricky position for all but the most speculative and risk-on investors; the sector is ascendant, true, but combines the volatility of biotech stocks with the inherent risk of small-cap tech startups. At the same time, these companies are often pre-revenue and R&D-intensive, which creates a unique series of cash flow problems that could bankrupt even the most promising neurotech stock.

To that end, these neurotech stocks have some of the best potential among an admittedly small field — but they’re riskier than more mundane options, even if the potential rewards outweigh the negatives.

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NeuroOne Medical Technologies (NMTC) Modern Medical Research Laboratory with Computer, Microscope, Glassware with Biochemicals on the Desk. Scientific Lab Biotechnology Development Center Full of High-Tech Equipment. Biomedical technology stocks, RSLS Stock

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NeuroOne Medical Technologies (NASDAQ:NMTC) is one of today’s best options among neurotech stocks, as the firm’s proprietary electrodes are thin and flexible enough to map easily onto the human brain (relatively and comparatively speaking, that is). NeuroOne’s current ambitions don’t yet scale to Musk’s, but that’s a good thing: a small-cap neurotech stock, NeuroOne is starting small and focusing on key healthcare monitoring tasks to pivot upward as cash begins coming in eventually.NeuroOne’s primary current core offerings is OneRF, which helps monitor and detect seizures for epileptic patients.

But they aren’t stopping there.

Last year, NeuroOne unveiled plans to develop drug delivery mechanisms leveraging neural probes, which could prove a boon to many medications that have trouble traversing the notoriously impenetrable blood-brain barrier. If the plans come to fruition, NeuroOne could be a major contributor to patient outcomes across a range of healthcare applications.

Neuronetics (STIM) Illustration of a biopharma company. Doctor standing in front of various medical icons.

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Neuronetics (NASDAQ:STIM) treats psychiatric and mental health disorders leveraging neuromodulation tech primarily consisting of transcranial magnetic stimulation, a minimally-invasive outpatient procedure involving external magnetic field application. Its treatment is proven if not widespread, and has helped more than 175,000 patients nationally over the course of more than 6.4 million treatment applications.

Compared to alternatives, Neuronetics’ tools maintained durability for twelve months or longer, meaning treatment effects took longer to wear off with fewer visits required. The application also has a shockingly high response rate at 83% and low remission rate of 62%. This may be one major contributor to why most haven’t heard of the neurotech stock — treatments this effective pose a risk to pharma’s bottom line, and could ultimately make many existing therapeutics obsolete if the firm’s depression treatments continue performing.



Still, Neuronetics is making rapid inroads toward wider adoption, which includes a recent Medicaid win that opens the door to transcranial magnetic stimulation access for more than 14 million adolescents and adults in California.

Medtronic (MDT) A photo of a Medtronic PLC (MDT) sign outside a building.

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Medtronic (NYSE:MDT) isn’t a pure-play neurotech stock, but it still stands out as having latent potential to secure a sizable chunk of the market as tech advances. The MedTech company is already known for forward-thinking initiatives that include a partnership with Nvidia (NASDAQ:NVDA) to develop AI-enabled diagnostics. Assuming that Medtronic will position itself as a neurotech stock as the sector matures is only reasonable.

Medtronic already offers a range of peripheral products, including cranial robotics, deep brain stimulation and spinal cord neurostimulation systems. Morever, Medtronic operates in more than 150 countries, all but assuring rapid market penetration as neurotech tools comes to the fore.

Interested investors can even see a possible sneak peek of Medtronic’s planned forays into neurotech, as a staff member will be speaking at a July 29th NeuroTech Talk conference. While Medtronic hasn’t sanctioned the talk, nor is it intended to reveal any company-specific plans, it offers an enlightening look into an emerging industry from undeniable experts.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.

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