This Non-AI Stock Is Trouncing the Magnificent 7 — Its 10% Tumble Makes It a Buy

The stock market’s relentless climb since 2022 has been a tech-fueled spectacle, driven by the Magnificent 7—Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), Nvidia (NASDAQ:NVDA), and Tesla (NASDAQ:TSLA). Even today, these giants continue to prop up the S&P 500, defying inflation fears and geopolitical noise. 

Nvidia leads the pack, its AI-chip dominance delivering jaw-dropping gains that redefine growth investing. But all seven have kept the rally alive: Microsoft’s cloud empire, Amazon’s AWS and e-commerce might, Apple’s sticky ecosystem, Alphabet’s ad dominance, Meta’s social media grip, and Tesla’s EV innovation. Artificial intelligence is the glue — powering everything from data centers to self-driving cars. These stocks have set the pace, with investors betting big on AI’s transformative potential. 

Yet, one non-AI stock has outshined all but Nvidia over the past three years, surpassing the combined 486% gain of six of the seven companies — Nvidia, of course, has been an untouchable moonshot. Now, this company has handed investors a rare discount.

A Public Safety Powerhouse

Axon Enterprise (NASDAQ:AXON), the Arizona-based leader in law enforcement tech, has been a growth juggernaut. From September 2022 to 2025, its stock soared 515%, crushing the Magnificent 7’s combined performance. A $10,000 investment ballooned to over $61,500, dwarfing the broader market’s 40% rise. 

Axon’s edge is a sticky ecosystem of its own, comprising Tasers, body cameras, and cloud-based evidence management. Agencies adopting Axon Body 4 cameras or TASER 10 devices often commit to Axon Evidence subscriptions, driving more than 70% of revenue from recurring sources. 

The second quarter saw sales leap 33% to $669 million, with 95% gross margins signaling robust profitability despite heavy AI R&D spending. Trading at 15 times sales and sporting a $55 billion market cap, Axon’s premium valuation reflects its better than 30% annual bookings growth and unmatched grip on public safety.

A Bold Bet on 911

Yesterday, Axon’s stock skidded 10%, shedding $5 billion in value after announcing its acquisition of Prepared, an AI-powered 911 communications platform, for $800 million to $900 million in cash and stock. Prepared, serving over 1,000 agencies across 49 states, integrates 911 call audio, video, texts, and GPS into a real-time dashboard, slashing response times. 

This move extends Axon’s reach from incident response to the initial emergency call, creating a seamless “call-to-closure” pipeline. Officers using Axon’s cameras could tap Prepared’s insights instantly, boosting efficiency and safety. 

The deal also challenges Motorola Solutions (NYSE:MSI), the dispatch software leader with its CommandCentral platform. By bundling AI-driven call handling, Axon eyes a slice of the $20 billion public safety comms market, fueling its 20% compound annual growth rate trajectory.

Why the Market Flinched

The sell-off wasn’t about Prepared’s fit, but rather Axon’s nosebleed valuation — 87 times forward earnings leaves little margin for error. Investors balked at potential stock dilution, integration risks with Prepared’s young tech, and the deal’s hefty price (10 times Prepared’s sales). 

With Axon doubling down on AI, some feared it was overextending itself amid this year’s profit dip due to increased capex spending. 

Market jitters were amplified by Motorola’s own dispatch slowdowns, which sparked the drop. Yet, analysts like Piper Sandler — which has an overweight rating and an $893 per share price target — and Needham (buy rating $870 target) see the deal as a long-term win, citing cross-sell potential and market share gains.

Key Takeaway

This dip is a golden opportunity for investors. Axon remains the unrivaled leader in law enforcement tech, equipping over 17,000 agencies with Tasers, cameras, and evidence tools. Prepared slots neatly into this ecosystem, enhancing retention and upselling while stealing ground from rivals like Motorola. 

With AI bookings up 500% and a $129 billion addressable market, Axon’s growth runway is vast. This 10% pullback is a rare chance to own an essentially non-AI titan poised for another leg up.