Tech Stocks Dive Due to Economic Fears and Trade Tariffs

Tech stocks are in turmoil as concerns about economic slowdown and tariffs dominate the market. Stocks like Alphabet and Taiwan Semiconductor are facing declines due to these pressures, impacting investor sentiment and pricing forecasts.

Date: 10-03-2025

AI Rating: 4

Market Overview: Major tech stocks, particularly in the AI sector, are experiencing declines as economic growth fears and President Trump's tariffs come to light. The Nasdaq Composite has fallen roughly 11.8% since February 18, putting pressure on tech stocks.

Company-Specific News: Alphabet's shares fell 5%, driven by uncertainty regarding its legal battle with the U.S. Department of Justice (DOJ). While the DOJ has dropped a proposal about Google's AI holdings, it continues to push for the sale of the Chrome browser, which would significantly impact the search industry. Analysts express concern over the DOJ's strict approach to Google's market practices.

In contrast, Taiwan Semiconductor announced a significant revenue growth of 39% year over year in the first two months of 2025, bolstered by strong demand for AI chips. This positions the company favorably amid the current turmoil. Oracle is also expecting an 11% increase in adjusted EPS, suggesting resilience despite the broader market pressures.

Conclusion: Overall, although Alphabet faces regulatory hurdles that may negatively impact its stock prices, Taiwan Semiconductor and Oracle could see positive momentum based on their strong fundamentals. However, the prevailing market concerns make tech and AI stocks sensitive to external economic factors.

The report lacks detail on specific earnings per share, profit margins, return on equity, free cash flow, and net income figures, which are critical for a comprehensive understanding of these companies' financial health.

Stocks: GOOGL TSM ORCL