Tech stocks have been at the forefront of many life-changing opportunities, delivering phenomenal returns for myself and others. This outperformance has raised many companies like Amazon, Microsoft, and Google to superstar status with their technological advancements and industry-changing devices and technology.

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However, today's tech giants are not guaranteed to become the leaders of tomorrow. Over time, some companies will emerge and introduce a brand-new revolution. One only needs to recall how OpenAI brought talking to an AI chatbot to the mainstream, all while other tech companies scrambled to catch up and incorporate the technology into their offering.

This revolution has become both an opportunity to grow and a challenge for some tech companies to keep up. And that's why, in this article, I'll look at three tech giants facing major challenges in keeping up with their glory days. To get my list, I screened the market using the criteria below:

1. Must have a YTD stock price percent change below 0,

2. Should have analyst recommendation between hold and weak sell,

3. The stock should be in the tech sector and have at least a $10 billion market cap.

I then sorted the list based on the stock's YTD price performance. Doing so lets me focus on the high-value tech stocks the market has crushed. Then, you can decide whether or not you agree with Wall Street analysts on their hold or sell ratings despite their size and prestige.

Intel Corp (INTC)

If you haven't heard of Intel, I'd hazard a guess that you may have been living under a rock. Intel Corp has been one of the main innovators of our time through the advances they have made in semiconductor design and manufacturing of the computer central processing unit (CPU). That said, with increased competition, the company has been having issues staying relevant, translating to dismal financials.

Intel's market cap is now around $88.8 billion and is down -56% YTD, a shadow of its former $243 billion self.

Today, the company is seen as struggling on all fronts. It is already late catching up in the AI game, and revenues have been nosediving. Not only that, roughly 15% of the company’s headcount is expected to vanish. Dividend growth investors will note that dividends have also been suspended. And if that's not all, a group of shareholders have decided to sue Intel, highlighting that the company has concealed problems within it.

Now, I get it. Intel was late to the AI game. But if you step back a bit, you will also see that Intel has faced manufacturing issues while playing catchup to achieve manufacturing parity with competitors like AMD and TSMC (TSM). In fact, AMD is a well-accepted, lower-cost replacement in the x86 space for PC and server CPUs.

Now, with the AI boom shifting spending towards GPUs, competitors like Nvidia's (NVDA) products are used in cloud computing and artificial intelligence applications. So, there's no doubt it'll take a while for Intel to stabilize its earnings and turn around its revenue.

That said, analysts' consensus "hold" rating isn't something to ignore. If you're holding INTC stock, there may be wiser places to park your capital.

Zoom Video Conferencing (ZM)

Almost anyone who worked in the corporate world during the pandemic may have used the Zoom Video Conferencing (NASDAQ:ZM) app. While Zoom may have been the tech darling of 2020, there are now easier-to-use, more feature-rich, and less expensive competitors like Microsoft Teams and Google Meet.  

While Zoom has a market cap of almost $22 billion, its stock is practically flat YTD. This has prompted fair price value target reductions rating changes from brokers like Piper Sandler and Wells Fargo & Company with a consensus "hold" rating among 30 analysts.

While the company has plans to veer away from being just a call-conferencing tech firm by including AI in its tech, the question is, will it be enough to make customers stay, and will customers be willing to pay for the said features? I, for one, prefer not to use the product as I tend to talk far more than the 40-minute time limit on the free plan. 

So, if you're holding ZM stock in your portfolio, it may be time to decide if it still has enough luster to make your portfolio shine.

Rockwell Automation (ROK)

Known for its strong automation and digitization services, Rockwell Automation (NASDAQ:ROK) is an industrial automation company that operates in three main segments:

• Lifecycle Services

• Software and Control

• Intelligent Devices

The company has been struggling with its stock price performance, which is currently down almost 12% YTD, thanks to the continuous impact on electrical vehicle markets, which are some of its main clients. Indeed, Rockwell's latest financials have had mixed results and a reduced outlook, signifying a further slowdown in the business.

It just goes to show that even companies with market caps of $30 billion are affected by change.

Just as AI may be the hottest topic around, it doesn't mean it’s all sunshine and rainbows in Silicon Valley. Unlike companies like Nvidia, DataRobot, Oracle, etc., its AI implementation has not been well received. In addition, several brokers, like JPMorgan, Berenberg, etc., have downgraded Rockwell Automation, and consensus among ten analysts covering ROK stock is currently a "hold."

So, if you have ROK in your portfolio right now, you might want to check the current challenges it is facing right now.

Final Thoughts on Holding the Bag With These Tech Stocks

What may have been a market darling one, five or ten years ago may not be relevant today, especially when it comes to tech companies. Like anything else in investing, assessing a company's outlook is always wise. This is basic due diligence! For example, ask yourself, what do they have to look forward to down the road? As investors, we are betting on a company's direction not today but in the future. And if the future isn't so bright, the question becomes, why not look for the next opportunity?

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