Broadcom (AVGO), Axon (AXON), and Costco (COST) Are Brilliant Growth Stocks to Buy For the Nasdaq 100 Correction

If investors have learned anything over the past five years, it’s that the stock market can be a wild roller coaster ride. We have suffered through intense crashes and wild bull runs, sometimes in just a matter of weeks.

When the pandemic hit, the Nasdaq 100 tumbled 28% in just one month, only to turn around and head off in the other direction immediately after on a 21-month tear that would see the index more than double in value. In 2022, though, the Nasdaq 100 lost 33%, but it rebounded once again the following year with a 54% gain. Now the tech-heavy index has entered into correction territory once more.

The index, which is the 100 largest, non-financial stocks listed on the Nasdaq stock exchange,  is now down 11% from the record high hit last month. Some of the biggest names are bleeding red since those peaks, including Tesla (NASDAQ:TSLA) (down 31%), Palantir Technologies (NASDAQ:PLTR) (down 19%), and Amazon (NASDAQ:AMZN) (down 16%).

However, just because a company is down sharply doesn’t mean it is not a good stock to buy. In fact, it could be the best time to purchase it, while it’s on sale. With fundamentals still rock-solid, they are like finding a gem in the discount bin. And with that in mind, the following three companies are among the best to buy now for the Nasdaq 100 correction.

Broadcom (AVGO)

Broadcom (NASDAQ:AVGO) is the first stock to buy for the downturn, even though AVGO stock itself is down 17% over the past month and 19% year-to-date.

The decline stems from a cautious second-quarter outlook announced that projected $14.9 billion in revenue against the $15.1 billion Wall Street expected. Semiconductor sales rose 11% to $8.2 billion, though President Trump’s proposed tariffs and technology export bans create pressure. 

However, first-quarter results still tell a robust story as revenue reached $14.9 billion, up 25% from last year and surpassing analyst estimates of $14 billion. Adjusted earnings hit $1.60 per share, easily beating $1.57 per share forecasts as AI chip revenue rose 77% to $4.1 billion. VMware also helped infrastructure software grow to $6.7 billion, a 47% increase, and cash reserves stand at $9.3 billion. 

Broadcom trades at 24 times next year’s earnings estimates, and with profits expected to surge 23% annually for the next five years, it offers more upside potential than downside risk. The market’s overreaction presents an opportunity for investors seeking long-term gains.

Axon Enterprise (AXON)

Axon Enterprise (NASDAQ:AXON) is faring better than Broadcom with shares up 2% from last month, but they suffered their own big drop, losing a quarter of its value last month following an analyst downgrade. But following earnings, it’s beginning to make its way back up because of its strong competitive position.

The law enforcement technology stock reported fourth-quarter revenue of $575 million, up 33% and beating $566 million estimates, with earnings of $2.08 per share, handily topping $1.40 per share forecasts. On a full-year basis, Axon is enjoying its third year of better than 30% growth as AI-driven tools like Draft One and a $10 billion order backlog bolster its outlook.

Certainly there are concerns. Its breakup with Flock Safety, a leader in automatic license plate readers, has investors worrying the tech company will offer competition Axon hasn’t faced in some time. Pentagon budget cuts could also hit Axon’s 60% government revenue.

Yet Axon continues to expand its own technology offerings, including real-time translation services for officers, drones, and robotics. 

Admittedly, Axon’s valuation isn’t cheap, but it is the dominant player in less than lethal weapons for law enforcement, body cameras, and evidence database management. Considering the mass surveillance concerns over indiscriminate license plate reading technology, and Axon Enterprise may not have lost much in the Flock Safety separation while giving investors a cheaper price to get in.

Costco (COST)

The third stock to buy for the Nasdaq 100 correction is warehouse club leader Costco (NASDAQ:COST), which is typically an all-weather retailer because of the value it delivers for consumers. With nearly 1,000 locations worldwide, including over 600 in the U.S., it remains a go-to destination for shoppers looking to stretch the wallets further.

Prices are going to go up as Trump’s tariffs raise costs, though there could be a long-term benefit if the U.S.’s trading partners stop penalizing U.S. goods exported to those countries. It is hoping for short-term pain in exchange for long-term gains. And because Costco won’t be the only retailer dealing with higher prices, the impact should be minimized, though it does have exposure on certain goods, like produce, alcohol, and other household merchandise. It is the world’s 12th largest importer.

Yet Costco makes about half of its operating profits on membership fees on its 76.2 million paid subscribers, almost all of whom renew every year. It could be why Wall Street maintains its buy rating on COST stock and has set a one-year consensus price target of $1,029 per share, which implies 15% upside from current levels.

As a superb dividend growth stock with a 10-year history of raising its payout 13% a year, plus paying shareholders special dividends, Costco is a premiere stock to own for the stock market correct.

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