2 Great Tech Stocks to Buy If the Stock Market Crashes

The stock market has been on a rollercoaster ride lately, with investors fretting over tariffs, trade wars, inflation, and the looming specter of a recession. The great bull run that kicked off after the pandemic's early days may be coming to an end, but that doesn't mean all hope is lost. In fact, now could be the perfect time to scoop up high-quality stocks at a discount. If the market takes a dive, two tech stocks stand out as great long-term buys: Cloudflare and Kyndryl.



Cloudflare: The Edge Computing Powerhouse

Cloudflare has seen its stock tumble around 35% since peaking earlier this year, largely due to worries about inflation, tariffs, and economic uncertainty. Despite this decline, Cloudflare remains an expensive stock with a price-to-earnings ratio of 140 based on the average analyst estimate for fiscal 2025. But don't let that high valuation scare you off—there's a lot to like about this company.

Cloudflare's edge computing network spans more than 335 cities around the world, granting the company an incredible amount of optionality. Beyond its core security and caching products, Cloudflare has built a wide array of additional products, including Zero Trust services, various database and storage products, and ultra-fast artificial intelligence (AI) inference. By 2027, Cloudflare expects its total addressable market to reach $222 billion, thanks to this continual expansion.

AI is a particularly large opportunity for Cloudflare. The company is focused on providing fast, efficient, and inexpensive AI inference to its customers. Its AI platform integrates with its serverless computing services, allowing customers to easily run a variety of AI models directly on Cloudflare's network or use its AI Gateway service to access third-party models. AI agents, which are designed to autonomously perform multistep tasks using AI models, are well suited to run on Cloudflare's network.

At the right price, Cloudflare stock would be a great long-term buy. Investors may have a golden opportunity to pick up shares if the stock market takes a dive this year.

Kyndryl: The IT Services Provider with a Bright Future

Kyndryl, the IT services provider spun out of IBM, has been working through unattractive contracts that dragged down its bottom line. The plan was to work through those obligations while focusing on higher-margin opportunities, a multiyear process that's only now starting to show results.

In fiscal 2025, Kyndryl expects about half of its revenue to come from higher-margin deals struck after the company became independent, with the rest coming from lower-margin legacy deals. By fiscal 2028, the company sees revenue from higher-margin deals surpassing 90% of total revenue. The impact on the company's bottom line, if all goes to plan, will be nothing short of miraculous. Kyndryl expects to more than double its pre-tax profit and triple its adjusted free cash flow over the next three years as the shift to higher-margin deals plays out. With $1 billion in free cash flow projected for fiscal 2028, Kyndryl's $8 billion market capitalization looks like a steal.

However, Kyndryl operates in an incredibly competitive industry that's sensitive to economic conditions. The stock has surged over the past couple of years as investors began to wake up to the opportunity, but a recession would likely delay the company's plan to boost profits and free cash flow. If Kyndryl stock drops significantly from here as investors sell off stocks, the IT services provider should be on the top of your watchlist. Kyndryl is an underappreciated company with a sound strategy and the potential to deliver market-beating gains over the next few years.

The Bottom Line

The current economic uncertainties present both risks and opportunities for investors. While the stock market's volatility can be unsettling, it also creates opportunities to buy high-quality stocks at a discount. Cloudflare and Kyndryl are two companies that align well with this strategy. Cloudflare's edge computing network and AI capabilities position it well for long-term growth, while Kyndryl's focus on higher-margin IT services offers a path to profitability. Investors should carefully consider these dynamics when evaluating the long-term viability and profitability of these companies.

In summary, if the stock market crashes, now could be the perfect time to scoop up high-quality tech stocks at a discount. Cloudflare and Kyndryl are two companies that stand out as great long-term buys, offering investors the potential for significant gains in the years to come.