2 Stocks I'd Load Up On if the Market Dips in 2025

Market Performance and Strategy - The S&P 500 experienced a strong year in 2024 but dipped by 9% at one point, which is common as market corrections occur approximately every other year [1] - Investors should prepare a shortlist of stocks to buy during market drops, as recoveries can be swift [1] - Two stocks highlighted for potential investment during a market drop in 2025 are CrowdStrike (CRWD) and Taiwan Semiconductor Manufacturing (TSM) [2] CrowdStrike (CRWD) - CrowdStrike is a dominant cybersecurity software provider, initially offering endpoint protection but expanding to a broader range of cybersecurity products [3] - In Q3 FY2025, 66% of CrowdStrike's clients used at least five products, and 20% used at least eight, indicating significant upselling potential [3] - The company aims to achieve $10 billion in annual recurring revenue (ARR) by FY2031, with current ARR at$4.02 billion, up 27% year-over-year [4] - To reach the $10 billion ARR goal, CrowdStrike needs a compound annual growth rate (CAGR) of 16%, which is feasible through new client acquisition and product expansion [4] - CrowdStrike's stock is considered expensive, trading at 23.6 times sales, but remains a promising long-term investment [5][6] Taiwan Semiconductor Manufacturing (TSMC) - TSMC is the world's leading contract chip manufacturer, producing chips for major tech companies like Nvidia and Apple [8] - TSMC's position is advantageous as it manufactures chips for competitors, making it a key player in the tech industry [8] - AI-related revenue is a significant growth driver for TSMC, with management expecting it to triple in 2024 [9] - TSMC's stock price nearly doubled in 2024, but it remains fairly priced at about 23 times 2025 earnings [9] - TSMC is considered a vital company in the technology sector, and any market dip would present an opportunity to increase investment [10]