3 Tech Stocks I'm Buying if the Nasdaq Enters a Correction

The Nasdaq Composite has been on a rollercoaster ride in recent months, with tech stocks taking a beating due to fears of a slowdown in the AI sector and weakening consumer demand. As of March 2, 2025, the Nasdaq is down more than 8% from its peak closing value of 20,173.89 on Dec. 16, 2024, putting it on the verge of a correction, typically defined as a drop of 10% or more from a recent closing peak. If the Nasdaq does enter a correction, investors may want to consider buying the dip in high-quality tech stocks. Here are three tech stocks that could be attractive investments if the Nasdaq corrects:

1. MercadoLibre (MELI)
MercadoLibre is a leading e-commerce and fintech company in Latin America, with a strong track record of growth and resilience in various market conditions. In the fourth quarter of 2024, MercadoLibre's revenue jumped 37% to $6.1 billion, or 96% on a currency-neutral basis, and operating income was $820 million, equal to a margin of 13.5%. The company benefits from large growth opportunities in e-commerce and fintech, which are still relatively underpenetrated in Latin America. MercadoLibre's unique and comprehensive business model gives it multiple ways to grow, including e-commerce, fintech, advertising, and its MELI+ subscription program. Compared to other e-commerce companies, MercadoLibre continued to deliver blockbuster results even after the pandemic, while others saw their sales growth shrivel. If the Nasdaq corrects, MercadoLibre's stock price may also decline, presenting an opportunity for long-term investors to buy the dip.

2. Axon Enterprise (AXON)
Axon Enterprise is a tech company focused on law enforcement tech, which makes it less sensitive to economic cycles compared to typical software-as-a-service (SaaS) companies. In 2024, Axon's revenue grew by 33%, and margins expanded. The company is tapping into new technologies like drones for its drone first responder (DFR) program and generative AI for Draft One, which generates first drafts of police reports. Axon's customer base is expanding beyond law enforcement to the enterprise, as shown by its biggest contract ever with a global logistics firm. Axon should be insulated from federal budget cuts as its technology helps customers become more efficient and save money. If the Nasdaq corrects, Axon's stock price may also decline, but the company's unique business model and growth prospects should help it weather the storm.

3. Upstart (UPST)
Upstart is an AI-based lending platform that has reinvented its business since its IPO in 2020, delivering significantly improved results even in a challenging environment for lenders. In the fourth quarter of 2024, Upstart's revenue was up 56% to $219 million, with a conversion rate improving from 11.6% to 19.3%. Upstart nearly broke even on a generally accepted accounting principle (GAAP) basis and expects to be GAAP profitable in 2025. The company introduced Model 18, a new AI-based model that has significantly improved its loan screening and acceptance rate, showing a technological advantage over its peers. If the Nasdaq corrects, Upstart's stock price may also decline, but the company's innovative AI-based lending platform and strong growth prospects should help it bounce back once market sentiment improves.

In conclusion, if the Nasdaq enters a correction, investors may want to consider buying the dip in high-quality tech stocks like MercadoLibre, Axon Enterprise, and Upstart. These companies have strong fundamentals, unique business models, and growth opportunities that set them apart from other tech stocks in their respective sectors. Long-term investors should focus on the fundamentals and growth prospects of the companies they invest in, rather than getting caught up in short-term market sentiment and investor psychology.