Market Crash Preparedness: Taiwan Semiconductor, Alphabet, and Amazon Top Picks
The stock market is near all-time highs, but surprises can still send it crashing. To be prepared for such an event, investors should have a short list of stocks to buy. According to Taiwan Semiconductor Manufacturing investor Keithen Drury, three top picks are Taiwan Semiconductor, Alphabet (Google), and Amazon.
Taiwan Semiconductor is the world's largest chip manufacturer by far, supplying nearly every advanced electronic device. It has become irreplaceable due to its unparalleled capacity. Drury calls it a 'safe bet' that we'll need more advanced chips in greater quantities.
Alphabet operates Google Search, an advertising cash cow. While AI was expected to replace search, this hasn't happened yet. Alphabet's cloud computing division, Google Cloud, also benefits from AI workloads. It receives continuous revenue regardless of market conditions.
Amazon and Alphabet share similar reasons for being smart buys in a downturn. Amazon has a strong commerce business and a thriving cloud computing platform, Amazon Web Services (AWS). Both companies have survived previous market turbulence, including the dot-com bubble and the COVID-19 pandemic.