Three Stocks to Ride Out Market Crashes: TSMC, Alphabet, and Amazon

Market history suggests that sharp sell-offs can arrive without warning, and investors should be prepared. According to First Trust Advisors' review of Federal Reserve and market data, the S&P 500 went through 14 bear markets between April 1947 and April 2022, with declines ranging from 20.6% to 51.9%. The index has also logged roughly 38 corrections of 10% or more since 1950.

Investors who have done their homework can take advantage of dislocations in the market by buying quality businesses at more attractive valuations. Three stocks stand out as top candidates for this scenario: Taiwan Semiconductor Manufacturing (TSM), Alphabet (GOOG, GOOGL), and Amazon (AMZN).

TSMC is the world's largest contract chipmaker, fabricating advanced processors for smartphones, data centers, automotive electronics, and industrial equipment. Its dominance in the semiconductor supply chain makes it difficult to displace, and its revenue base extends beyond AI adoption.

Alphabet presents a similar profile, with its core advertising franchise defended by integrating AI capabilities into search products. The company also benefits from cloud computing, where usage-based pricing ensures steady income even during downturns.

Amazon's dual-engine model spans e-commerce and cloud computing, providing demand that does not disappear during recessions and benefiting from enterprise AI workloads that continue running regardless of stock market conditions.