While the Nasdaq 100 (^NDX) is filled with cutting-edge technology and consumer companies, not all are on solid footing. Some are dealing with declining demand, high costs, or regulatory pressures that could limit future upside.
Even among high-growth companies, some are struggling, which is why we built StockStory - to help you separate winners from losers. Keeping that in mind, here is one Nasdaq 100 stock that has huge potential and two that may struggle.
Two Stocks to Sell:
Microchip Technology (MCHP)
Market Cap: $50.38 billion
Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.
Why Do We Steer Clear of MCHP?
- Annual sales declines of 21.4% for the past two years show its products and services struggled to connect with the market during this cycle
- Performance over the past five years shows each sale was less profitable as its earnings per share dropped by 13.1% annually, worse than its revenue
- Free cash flow margin dropped by 17.8 percentage points over the last five years, implying the company became more capital intensive as competition picked up
Microchip Technology is trading at $89.43 per share, or 27.9x forward P/E. If you’re considering MCHP for your portfolio, see our FREE research report to learn more.
Strategy (MSTR)
Market Cap: $42.24 billion
Once a traditional business intelligence software provider, Strategy (NASDAQ: MSTR) develops AI-powered enterprise analytics software while also functioning as a major corporate holder of Bitcoin cryptocurrency.
Why Do We Pass on MSTR?
- MicroStrategy’s core analytics software has been eclipsed by its all-in Bitcoin strategy, leaving product innovation and enterprise deals starved for attention
- The company’s debt-financed Bitcoin buying ties shareholder fortunes to crypto swings and interest rates, amplifying downside risk and uncertainty
- On the bright side, its vast Bitcoin treasury gives Executive Chairman Michael Saylor a unique springboard to capture crypto upside and court investors seeking leveraged exposure to digital assets
Strategy’s stock price of $93.48 implies a valuation ratio of 54.3x forward price-to-sales. To fully understand why you should be careful with MSTR, check out our full research report (it’s free).
One Stock to Buy:
Micron (MU)
Market Cap: $1.12 trillion
Founded in the basement of a Boise, Idaho dental office in 1978, Micron (NASDAQ: MU) is a leading provider of memory chips used in thousands of devices across mobile, data centers, industrial, consumer, and automotive markets.
Why Are We Bullish on MU?
- Annual revenue growth of 106% over the past two years was outstanding, reflecting market share gains this cycle
- Incremental sales over the last five years have been highly profitable as its earnings per share increased by 57.1% annually, topping its revenue gains
- Free cash flow margin grew by 14.1 percentage points over the last five years, giving the company more chips to play with
At $1,138 per share, Micron trades at 10.6x forward P/E. Is now a good time to buy? 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 (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
