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.
With rapid innovation comes rapid change, and StockStory is here to help you identify which Nasdaq 100 stocks are still worth your money. Keeping that in mind, here is one Nasdaq 100 stock driving the future of tech and two that may struggle.
Two Stocks to Sell:
NXP Semiconductors (NXPI)
Market Cap: $59.91 billion
Spun off from Dutch electronics giant Philips in 2006, NXP Semiconductors (NASDAQ: NXPI) is a designer and manufacturer of chips used in autos, industrial manufacturing, mobile devices, and communications infrastructure.
Why Is NXPI Not Exciting?
- Flat sales over the last two years suggest it must find different ways to grow during this cycle
- Projected sales growth of 15.4% for the next 12 months suggests sluggish demand
At $237.30 per share, NXP Semiconductors trades at 13.4x forward P/E. To fully understand why you should be careful with NXPI, check out our full research report (it’s free).
Tesla (TSLA)
Market Cap: $1.29 trillion
Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ: TSLA) is an electric vehicle company accelerating the world’s transition to sustainable energy.
Why Do We Think TSLA Will Underperform?
- Tesla’s scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical.
- The company’s execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors.
- On the bright side, Tesla’s Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company.
Tesla’s stock price of $325.35 implies a valuation ratio of 166.6x forward price-to-earnings. If you’re considering TSLA for your portfolio, see our FREE research report to learn more.
One Stock to Buy:
ADP (ADP)
Market Cap: $107.7 billion
Processing one out of every six paychecks in the United States, ADP (NASDAQ: ADP) provides cloud-based human capital management solutions that help businesses manage payroll, benefits, talent acquisition, and HR administration.
Why Are We Bullish on ADP?
- Offerings and unique value proposition resonate with customers, as seen in its above-market 7.9% annual sales growth over the last five years
- Dominant market position is represented by its $21.95 billion in revenue and gives it fixed cost leverage when sales grow
- ADP is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety
ADP is trading at $271.16 per share, or 22x forward P/E. Is now the time to initiate a position? See for yourself in our comprehensive research report, it’s free.
High-Quality Stocks for All Market Conditions
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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 Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.
