Why Shares of Alphabet (Google), Taiwan Semiconductor, and Oracle Are Falling Today

Market Overview - Major tech and AI stocks are experiencing declines due to concerns over slower economic growth and President Trump's tariffs, with the Nasdaq Composite down approximately 11.8% since February 18 [1] - Alphabet shares fell by 5%, Taiwan Semiconductor by 4.2%, and Oracle by 4.1% as of 11:17 a.m. ET [1] Regulatory Environment - The U.S. Department of Justice (DOJ) rescinded a claim to force Google to divest from certain AI companies, including Anthropic, but continues to pursue the sale of Google's Chrome browser [3][4] - Analysts noted that the DOJ's actions indicate a continued tough stance on Google, despite President Trump's deregulatory approach [5] Company-Specific Developments - Taiwan Semiconductor reported a 39% year-over-year revenue increase in the first two months of 2025, driven by strong demand for AI chips [6] - Oracle is expected to report an 11% increase in adjusted earnings per share and an 8% rise in revenue for its third-quarter fiscal earnings [7] Valuation Insights - Many tech and AI stocks are under pressure due to high valuations amidst broader economic concerns, making them more vulnerable to negative news [8] - Alphabet, Taiwan Semiconductor, and Oracle are considered reasonably valued, trading between 18x and 24x forward earnings, with potential upside from their AI capabilities [8][9]