The Nasdaq 100 (^NDX) is home to some of the biggest success stories in tech and growth investing. However, certain stocks in the index face challenges like profitability concerns, rising costs, or shifts in market trends.
Even among high-growth companies, some are struggling, which is why we built StockStory - to help you separate winners from losers. That said, here is one Nasdaq 100 stock that could lead the market and two best left off your watchlist.
Two Stocks to Sell:
Intel (INTC)
Market Cap: $509.7 billion
Inventor of the x86 processor that powered decades of technological innovation in PCs, data centers, and numerous other markets, Intel (NASDAQ: INTC) is a leading manufacturer of computer processors and graphics chips.
Why Do We Steer Clear of INTC?
- Sales tumbled by 4.9% annually over the last five years, showing market trends are working against it during this cycle
- Earnings per share decreased by more than its revenue over the last five years, partly because it diluted shareholders
- Negative free cash flow raises questions about the return timeline for its investments
Intel’s stock price of $100.92 implies a valuation ratio of 60.6x forward P/E. If you’re considering INTC for your portfolio, see our FREE research report to learn more.
Texas Instruments (TXN)
Market Cap: $253.6 billion
Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ: TXN) is the world’s largest producer of analog semiconductors.
Why Do We Think Twice About TXN?
- The company has faced growth challenges as its 3% annual revenue increases over the last five years fell short of other semiconductor companies
- Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 14.2 percentage points
- Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term
Texas Instruments is trading at $278.95 per share, or 29.3x forward P/E. Check out our free in-depth research report to learn more about why TXN doesn’t pass our bar.
One Stock to Buy:
Axon (AXON)
Market Cap: $49.13 billion
Providing body cameras and tasers for first responders, AXON (NASDAQ: AXON) develops technology solutions and weapons products for military, law enforcement, and civilians.
Why Is AXON a Good Business?
- ARR growth averaged 36.9% over the past two years, showing customers are willing to take multi-year bets on its offerings
- Market share will likely rise over the next 12 months as its expected revenue growth of 31.8% is robust
- Earnings per share have massively outperformed its peers over the last two years, increasing by 23.2% annually
At $582.51 per share, Axon trades at 67.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.
