Google Faces Pressure as Apple Develops AI Browser

Apple’s plans to build an AI-focused web browser could threaten Google’s position as the default search engine on iOS, sparking a sharp drop in Alphabet shares and a break below key technical levels.

Apple confirmed it is working on a redesigned browser for iPhone, iPad, and Mac, integrating AI-powered search features. This shift away from Google poses a direct risk to Alphabet’s core search revenue.

Following the news, Alphabet shares fell by $14.11 (-8.54%) to $151.09, breaking below the 50-day moving average at $162.00 and the 23.6% Fibonacci retracement between the February high and April low. The stock had previously faced resistance at the 38.2% level.

From its February peak, Alphabet is now down 27.1%, with a year-to-date decline of 21.1%. While it remains above its 2025 low of $140.53, traders are watching the next potential support level near $145.90.