Tech Stocks Suffer Correction Amid Market Turmoil

Market correction affects tech sector. Investors are cautious amid recession fears, but opportunities arise in quality stocks. Companies like Axon Enterprise and TSMC may offer attractive buying options amid the dip.

Date: 22-03-2025

AI Rating: 6

Earnings and Revenue Analysis: The report provides insights into two companies, Axon Enterprise and Taiwan Semiconductor Manufacturing Company (TSMC), which might have their stock prices affected due to the current market condition.

Axon Enterprise (NASDAQ: AXON) is noted for its impressive 130% gain over the last year, positioning it as a leader in law enforcement technology. Despite recent setbacks, including a 25% drop from its all-time high earlier this year, management's optimism and projected revenue growth between $2.55 billion and $2.65 billion this year suggest a high potential for recovery. This outlook should support stock performance even in a downturn, leading to a positive sentiment among investors.

Taiwan Semiconductor Manufacturing Company (NYSE: TSM), known as TSMC, recorded a significant revenue increase of 39% in the fourth quarter to $26.9 billion, coupled with an operating margin of 49%. This performance, alongside its strategic partnerships with major tech giants like Apple and Nvidia, indicates robust demand for its services. Although the stock has experienced a 24% drop from its peak, the anticipated growth driven by the AI boom and its favorable price-to-earnings ratio of 25 presents TSMC as a compelling investment opportunity during the current market instability.

Stocks: AXON TSM