Here Are the First 3 Stocks I'm Buying if the Market Crashes
Key Points
Taiwan Semiconductor supplies a large chunk of the world's chips.
Alphabet is growing its cloud computing business to offset a volatile advertising segment.
Amazon remains the go-to place to purchase goods online and the market leader in cloud computing.
- 10 stocks we like better than Taiwan Semiconductor Manufacturing ›
The S&P 500 (SNPINDEX: ^GSPC) is right around all-time highs right now, and nothing appears to be looming that could send the market lower. However, surprises do pop up and can send the market crashing (or soaring) at a moment's notice. Investors need to have a short list of stocks ready to buy if it goes down tomorrow.
Headlining my list are three stocks: Taiwan Semiconductor Manufacturing (NYSE: TSM), Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), and Amazon (NASDAQ: AMZN). This list could change if the reason for the market sell-off places a specific company right in the crosshairs, but if it's just a general sell-off, I'm buying these three first.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Taiwan Semiconductor Manufacturing
The general theme for these three stocks is companies that the world cannot live without. Taiwan Semiconductor is the world's largest chip manufacturer by far, and its chips go into nearly every advanced electronic device. It's also irreplaceable. Taiwan Semiconductor has become the most popular chip foundry for nearly every tech company, and switching away from it is nearly impossible because competitors don't have the capacity that TSMC has.
An investment in Taiwan Semiconductor is a bet that we're going to need more advanced chips in greater quantities, which seems like an extremely safe bet to make. Right now, Taiwan Semiconductor is supplying a lot of chips to the AI build-out, but there are other parts of its business that are unrelated.
Taiwan Semiconductor is one of the safest bets any investor can make in the market, as it's a bet on advanced technology. If the market sells off, Taiwan Semiconductor will be at the top of my list.
Alphabet
Another strongly positioned company is Alphabet. Alphabet operates the Google Search engine, which is an advertising cash cow. While everyone was concerned that AI would replace Google Search, that hasn't happened. Furthermore, Alphabet has integrated AI into Google Search, and it's one of the primary ways the majority of the world interacts with AI on a daily basis.
Another business unit boosted by AI is Alphabet's cloud computing division, Google Cloud. Alphabet has spent hundreds of billions of dollars building out data centers to run AI workloads, and charges by usage. If something causes the market to crash, these workloads won't all of a sudden just stop running. So, Alphabet will receive continuous revenue in good times and bad.
This steady income stream, combined with a dominant platform, makes Alphabet a smart stock to buy and own in any market condition, and it always has a knack for emerging from a downturn stronger than before.
Amazon
Amazon and Alphabet are two similar companies in terms of why I think they're smart buys in a downturn. Amazon has a strong commerce business, and while growth may slow during a downturn, everyone still needs a place to go to buy basic goods. Amazon also has a strong cloud computing platform, Amazon Web Services (AWS), that will stay strong for the exact same reason as Alphabet's.
Similar to Alphabet, Amazon has survived market turbulence before, including the dot-com bubble, the great financial crisis, and the COVID-19 pandemic. Amazon has built a commerce empire and a thriving cloud computing segment that's growing at a rapid rate. I don't think there's anything that will slow Amazon down, and any downturn will be a bump in the road.
Amazon is not only a top stock to buy in a downturn, but I also think it's a strong stock to buy now, as it's benefiting from the strength of AI spending.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,833!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,402,153!*
Now, it’s worth noting Stock Advisor’s total average return is 993% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 4, 2026.
Keithen Drury has positions in Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Recommended Articles
