The S&P 500 index is currently at the second-most expensive valuation in its history, dating back to 1871. Investors should avoid trying to time the market, as this often leads to missed gains. However, keeping a list of quality stocks for potential market stumbles can be beneficial. Nvidia, with a market cap of $4.6 trillion, is set to deliver record revenue and earnings due to strong demand for its data center chips.

Nvidia’s fiscal 2027 revenue estimate stands at $319 billion, with data center chips expected to drive around 90% of this figure. The company will soon launch new AI GPUs for data centers, which are projected to be significantly more powerful. Nvidia’s stock, trading at a P/E ratio of 46.7, presents an attractive valuation compared to the broader market.

CrowdStrike, a leading cybersecurity vendor, aims to double its annual recurring revenue to $10 billion in the next few years. Despite its high price-to-sales ratio, the company’s growth potential makes it a compelling investment opportunity. Meta Platforms, parent company of Facebook, continues to develop AI models for new features, like the Meta AI chatbot.

Meta Platforms spent over $70 billion on AI infrastructure and chips in 2025, working to improve its AI models and applications. Although Meta stock is down from its peak, its current P/E ratio of 28.7 makes it attractive. If the market experiences a downturn, it could present an opportunity to invest in Meta at a better price.

Read more at Yahoo Finance: 3 Stocks I Plan to Buy If the Stock Market Crashes in 2026