Macroeconomic headwinds caused a stock market sell-off last year, effectively putting shares of some valuable companies on sale. The market downturn presented countless investment opportunities while also highlighting the resilience of some companies' businesses.
As a result, it's not a bad idea to become familiar with some of the best growth stocks, so you're ready to load up in the event of another sell-off.
The tech industry has long had a reputation for offering investors consistent gains thanks to its wealth of growth stocks. The innovative nature of the sector keeps earnings and stock prices trending upward. The chart below shows that the Nasdaq-100 Technolgy Sector index has enjoyed significantly more growth over the last decade than the Nasdaq Composite, proving how lucrative that market can be for investors.
Data by YCharts.
Here are three unstoppable growth stocks to buy if there's a stock market sell-off.
1. Apple
As the world's most valuable company with a market cap of $3 trillion, it's not surprising that Apple (AAPL -2.88%) doesn't have its stock go on sale often. Shares are known for stability, rising roughly 300% in the last five years.
Even in 2022's economic downturn, when numerous tech companies suffered from reductions in consumer spending and stock losses, Apple experienced the lowest share price decline of the five biggest tech companies.
Data by YCharts.
Apple's consistent growth is mainly due to the potency of its products. The iPhone overtook Alphabet's Android last year in smartphone market share in the U.S., with Apple hitting the 50% mark.
The achievement is promising because the iPhone is one of the biggest growth drivers for the company's other businesses. The connectivity among all its devices promotes ease of use and means consumers are less likely to turn to competing products if Apple is an option.
This strategy has seen the company achieve leading market shares in nearly all its product categories, including tablets, smartphones, headphones, and smartwatches.
Likewise, the company's dominance in consumer tech bodes well for the long-term prospects of its recently unveiled virtual/augmented reality (VR/AR) headset, the Vision Pro. The VR market is projected to expand at a compound annual rate of 45% through 2030, making Apple's stock an attractive buy at almost any time, but especially in the event of a sell-off.
2. Microsoft
Like Apple, Microsoft (MSFT -0.82%) is rarely down for long. The chart above, featuring the big five of tech, shows the company wasn't far behind Apple among the lowest declining tech stocks last year.
Since its founding nearly 50 years ago, Microsoft has proved itself to be a king in software development, with digital products like Windows, Office, and Azure crucial to the productivity of countless businesses and consumers worldwide.
The company's stock has climbed 225% in the last five years. Meanwhile, annual revenue has risen by 58% and operating income by 94% in the same period. Microsoft has achieved massive success in tech, including dominant positions in operating systems, productivity software, video games, and cloud computing. And it doesn't appear to be slowing down, with its prospects in the high-growth artificial intelligence (AI) market.
Microsoft's $10 billion investment in ChatGPT developer OpenAI in 2019 could be one of the best decisions in the company's history. That has allowed it to procure exclusive licenses on multiple AI models and bring AI upgrades to many of its products.
With the power of its popular software brands and OpenAI, Microsoft could become the go-to for anyone seeking AI services. As a result, this growth stock is a no-brainer during a market downturn.
3. Advanced Micro Devices
Shares of Advanced Micro Devices (AMD -0.25%) are up roughly 80% since Jan. 1. Wall Street has grown bullish over the company's potential in AI, with its chip business likely to play a crucial role in the sector's growth.
Chipmakers appear to be one of the best stock investments this year as technological advances are likely to bolster demand for the long term. Several areas of tech need powerful hardware to develop, with AMD being one of the few companies producing the chips required.
The semiconductor company's chips already power numerous devices and platforms, including game consoles, laptops, cloud services, custom-built PCs, and more. So one of the best reasons to invest in AMD is to benefit from the growth of each of these markets.
In 2022, macroeconomic hurdles caused shares to plunge 55% throughout the year, mainly driven by declines in the PC industry. But the sell-off proved to be the best time to load up on AMD, with its meteoric rise this year. Consequently, it's a must-buy if the market takes a dive, as its stock is unlikely to stay down forever.
