With the Nasdaq in Correction Territory, I've Got My Eye on These 2 Stocks

Group 1: Market Overview - The Nasdaq Composite has entered a correction phase, defined as a pullback of at least 10%, due to concerns over trade wars, weakening consumer confidence, and high valuations [1] - Investor sentiment has shifted rapidly, with fears of a looming recession affecting market dynamics [1] Group 2: Axon Enterprise - Axon Enterprise was a top performer in the S&P 500 last year, achieving a 130% gain, and has shown significant growth over the past decade [3] - The company specializes in law enforcement technology, producing Taser weapons, body cameras, and cloud software for managing records and evidence [4] - Axon is investing in AI technology with a new tool called Draft One, which generates police report drafts from body cam footage, receiving positive feedback from law enforcement [4] - Despite a recent 25% decline from its all-time high, Axon management remains optimistic about potential new agreements with Flock Safety and reported better-than-expected fourth-quarter results [5][6] - Axon's primary clients are local and state law enforcement agencies, which may be more insulated from economic downturns, and the company's offerings provide strong competitive advantages [7][8] - Revenue is expected to grow by 25% this year, reaching between $2.55 billion and$2.65 billion [8] Group 3: Taiwan Semiconductor Manufacturing Company (TSMC) - TSMC is the world's largest third-party semiconductor manufacturer and is closely tied to the tech sector, particularly chip stocks [9] - The company experienced a 39% revenue increase in the fourth quarter, reaching $26.9 billion, with a high operating margin of 49% [11] - TSMC's shares have declined 24% from their peak in January, despite strong growth and profitability, and currently have a price-to-earnings ratio of 25, indicating good value [12] - The ongoing AI boom is expected to support TSMC's growth, and the company is investing heavily in new factories in the U.S. and elsewhere [13] - TSMC's revenue increased by 43% year over year in February, presenting a rare opportunity to invest in a high-growth company at a reasonable valuation [14]