Investors eye Axon and TSMC during Nasdaq correction

The Nasdaq Composite index has recently entered correction territory, meaning it has fallen at least 10% from its peak. Concerns about President Trump's trade wars, weak consumer confidence, and high stock valuations have led to this shift in investor sentiment. Many are worried about a potential recession. Despite these challenges, seasoned investors see opportunities to buy promising stocks at lower prices. Two stocks to watch are Axon Enterprise and Taiwan Semiconductor Manufacturing Company (TSMC). Axon Enterprise is a leader in law enforcement technology. The company makes Taser weapons, body cameras, and software for managing police records. Last year, Axon’s stock gained 130%, but it has since dropped about 25% from its all-time high earlier this year. The stock faced pressure after a partnership dispute, but management remains optimistic about future agreements. Despite its high valuation, Axon is expected to grow its revenue by up to 25% this year, supported mainly by demand from law enforcement agencies. TSMC, the world's largest semiconductor maker, is also worth considering. Its stock is down 24% from its peak in January. TSMC reported strong revenue growth of 39% in the fourth quarter and has a solid operating margin. The company plays a crucial role in the tech sector, supplying chips to major firms like Apple and Nvidia. Even though TSMC faces risks from an economic slowdown, the demand for chips, especially related to AI, remains strong. Investors may find good buying opportunities in both Axon and TSMC during this market decline. These companies have strong growth potential and are well-positioned even amid economic uncertainty.