These tech stocks are dragging the Nasdaq 100 index in 2024

The Nasdaq 100 index started the year well, surging to an all-time high of $17,658 on January 24th. In all, it has soared by more than 24% from its lowest point in October and by 153% from its lowest level during the COVID-19 pandemic. 

This surge has been helped by leading tech companies like Microsoft, Nvidia, ASML, Palo Alto Networks, and CrowdStrike. Most of these companies have done well, helped by the strong demand for Artificial Intelligence (AI). However, some of the biggest companies in the Nasdaq 100 index have dragged it downwards. Here are some of the top laggards in the index this year.

Nasdaq 100 vs Tesla vs PDD vs INTC vs On Semiconductor

Tesla is the worst-performing Nasdaq 100 index

Tesla, the biggest electric vehicle company, is the worst-performing stock in the Nasdaq 100 index this year. It has crashed by more than 24% in 2024 and by over 37% from its highest level in 2023. It has also plunged by over 53% from its all-time high. 

Tesla, like other EV companies, is going through a rough patch as growth and its margins wane. Also, it has suffered as Chinese EV companies flood the market with good and cheap vehicles. Most importantly, Hertz has started to sell its EVs, a move that has pushed used Tesla vehicles downwards. 

Intel is the second-worst-performing stock in the Nasdaq 100 index this year as it crashed by 14% in January. Most of this sell-off happened after the company published weak financial results this week. While the company’s AI products did well, its other businesses continued to weaken. 

Specifically, its programmable chips, gaming, and PC continued seeing weak growth. Other semiconductor companies like On Semiconductor, Globalfoundries, and Microchip Technology have also crashed hard this year.

PDD Holdings stock has plunged this year

PDD Holdings is another Nasdaq 100 index laggard this year as its stock has crashed by over 13%. The company has lagged because of the ongoing weakness in Chinese stocks as the Hang Seng and Shanghai Composite have all retreated. There are also concerns about the company’s profitability as it spends billions to promote Temu.

The other top technology laggards in the Nasdaq 100 index this year are The Trade Desk, Apple, Analog Devices, and Mongodb. Apple shares have dropped by more than 4% this year as concerns about its growth now that iPhone demand has cooled. 

Still, analysts are optimistic that the Nasdaq 100 index has more room to run this year, helped by the strong revenue growth and hopes of Fed cuts.