If the Stock Market Crashes Tomorrow, These Three Stocks Could Be Prime Bargains
Translated from Chinese and summarized by DistantNews. Read the original for the full story.
At a glance
- An overseas report identifies TSMC, Alphabet and Amazon as stocks investors could consider if a broad market sell-off occurs.
- The report points to the companiesโ positions in chip manufacturing, online advertising, cloud computing and e-commerce as reasons they could remain resilient.
- It says the companies could benefit from continued demand for advanced chips and artificial intelligence services, provided a downturn reflects broad panic rather than major company-specific problems.
What would be worth buying if stocks suddenly crashed? An overseas report names three companies for investors to put on a prepared buy-the-dip list: Taiwan Semiconductor Manufacturing Co., Alphabet and Amazon.
U.S. stocks remain near historical highs, and the S&P 500 has recently performed strongly. But markets can turn quickly, the report says, with any unexpected event capable of sending prices lower. Investors may be better served by deciding in advance what they would buy rather than searching for candidates after a sell-off begins.
The three companies share what the report describes as hard-to-replace positions in the global economy and technology industry. If a decline results from broad market fear rather than a serious deterioration in an individual companyโs fundamentals, their shares could become attractive lower-priced opportunities.
TSMC, described as the worldโs largest chip manufacturer and far ahead of its competitors, produces chips used in almost every advanced electronic device. Its leading-edge manufacturing capacity and technological advantages have made it a sought-after foundry partner for technology companies, which would struggle to find comparable alternatives. Buying TSMC amounts to betting that demand for advanced chips will continue growing, including through artificial intelligence. The companyโs broad range of other businesses also means it does not rely entirely on the AI boom.
Alphabet remains a major force in online advertising through Google Search. Although investors have worried that AI could replace traditional search, Google has gradually integrated AI features into its service, keeping search an important gateway for users reaching AI. Google Cloud is also benefiting from AI demand. Alphabet has invested heavily in data centers, while usage-based cloud pricing could help revenue remain resilient because corporate AI workloads do not immediately stop during market turbulence.
Amazon combines e-commerce with cloud computing. Consumers still need essential goods even if a recession slows spending, while Amazon Web Services continues to benefit from rising corporate AI outlays. The report says Amazon has continued developing through major market shocks, including the dot-com bubble, the global financial crisis and the COVID-19 pandemic. It therefore presents the company not only as a possible buy during a downturn, but also as a stock worth watching now.
Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.