2 Nasdaq 100 Stocks to Own for Decades and 1 That Underwhelm

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.

Investing in Nasdaq 100 stocks isn’t just about picking big names - it’s about finding the right ones, and that’s where StockStory comes in. That said, here are two Nasdaq 100 stocks that have huge potential and one best left off your watchlist.

One Stock to Sell:

NXP Semiconductors (NXPI)

Market Cap: $53.21 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 Does NXPI Worry Us?

1. Annual sales declines of 3.9% for the past two years show its products and services struggled to connect with the market during this cycle
2. Projected sales growth of 10.6% for the next 12 months suggests sluggish demand

At $210.94 per share, NXP Semiconductors trades at 15.5x forward P/E. Check out our free in-depth research report to learn more about why NXPI doesn’t pass our bar.

Two Stocks to Buy:

Nvidia (NVDA)

Market Cap: $4.45 trillion

Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.

Why Will NVDA Outperform?

1. Annual revenue growth of 88.3% over the past two years was outstanding, reflecting market share gains this cycle
2. Share buybacks catapulted its annual earnings per share growth to 80.5%, which outperformed its revenue gains over the last five years
3. Robust free cash flow margin of 45.5% gives it many options for capital deployment, and its recently improved profitability means it has even more resources to invest or distribute

Nvidia is trading at $182.10 per share, or 22x forward P/E. Is now a good time to buy? See for yourself in our full research report, it’s free.

Axon (AXON)

Market Cap: $45.76 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 Are We Bullish on AXON?

1. Ability to secure long-term commitments with customers is evident in its 39.4% average ARR growth over the past two years
2. Operating profits increased over the last five years as the company gained some leverage on its fixed costs and became more efficient
3. Earnings per share have massively outperformed its peers over the last two years, increasing by 28.8% annually

Axon’s stock price of $572.65 implies a valuation ratio of 73.5x forward P/E. Is now the time to initiate a position? Find out in our full research report, it’s free.

Stocks We Like Even More

ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum — both boxes checked at the same time.

Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as ServiceNow (+163% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.