May 3, 2026
After the sell-offs experienced in February and March, the April market rally may have completely reversed those losses. However, given elevated valuations and a mixed beginning to the first-quarter earnings season, some investors are beginning to reconsider their positions. Another market correction could be the next major event. A steep decline should not cause excessive concern; if a pullback occurs, it could present a long-term buying opportunity.
Stocks to Consider on a Pullback
Taiwan Semiconductor Manufacturing
Most semiconductor companies outsource the manufacturing of their chips to third-party foundries, and Taiwan Semiconductor Manufacturing (NYSE: TSM) dominates this space. According to Counterpoint Research, TSMC accounts for more than two-thirds of the global foundry business, despite industry efforts to reduce dependence on the company. The stock has made surprisingly consistent bullish progress since late 2022, when the launch of OpenAI's ChatGPT sparked a race for artificial intelligence hardware. As long as demand for AI processing chips remains insatiable, TSMC is expected to thrive. While paying a premium for a quality stock is acceptable, history suggests a pullback is coming sooner or later, and this ticker has been a reliably good one to buy on a dip.
Roku
Streaming technology company Roku (NASDAQ: ROKU) is described as one of the market's best-kept secrets and one of its most misunderstood names. The company's fate is tied to the streaming business, and it also operates its own streaming channel. Its role means it benefits regardless of which streaming services gain or lose popularity. In the last quarter, Roku's Q1 revenue increased 22% year over year, with gross profit rising 27%. People are now engaged with their streaming technology almost as much as with their mobile phones, indicating a resilient relationship.
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1. INTRODUCTION
Making Data-Driven Decisions…