Google – whose parent company is Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) – search volume has weakened. The company's global search market share dropped below 90% for the first time since 2015, according to StatCounter data.
The data shows the tech giant's search market share fell below the 90% level in October last year, and has remained below that level since (with the exception of February when market share briefly reached 90.15%).
Since its beginning in 1998, Google has dominated the global search engine market, paving the way for advancements in innovation, accuracy and speed.
But now, AI-powered platforms are gaining ground.
But as Phable explains, the tech landscape is evolving, and challengers are chipping away at Google's market share.
Rivals such as Microsoft's Bing, privacy-focused DuckDuckGo, and emerging AI-driven platforms like OpenAI's ChatGPT are capturing users who are looking for alternatives to Google's traditional search methods.
According to a survey by investment banking firm Evercore, 8% of respondents said they are using ChatGPT as their go-to search engine, up 1% from 6 months earlier.
It's true that we have a long way to go until Google loses dominance, but data suggests that we are seeing a shift in the attitude of users towards more acceptance of AI.
Why?
AI-powered tools can give users a new way of searching online.
AI can offer direct answers, including multi reasoning wherever needed. It can also read and summarise multiple sites, and even help with task automation.
This is especially attractive for younger generations which are changing the way search is used.
The decline of Google's search volume and global market share highlights the growth and ongoing dominance of AI, which could be good news for AI-related ASX stocks like Megaport Ltd (ASX: MP1) and NextDC Ltd (ASX: NXT).
Since October 2024, when Google's shares dropped below 90%, Megaport shares have steadily increased in price. The company's shares have increased 86.58% to $12.93 at the time of writing.
And it looks like the stock price could keep building. Morgans is bullish on the company, and has put a $14.00 price target on its shares.
According to its analysts "it is uniquely placed to help businesses move data globally and benefit from the growth of data related to both cloud computing and AI."
NextDC shares present a slightly different story. The AI company's share price has steadily fallen since around the same period last year. But news in early-May that it is pressing on with expansion plans created a sharp uptick in price.
Since 22 April, the stock has jumped 32.4% to $13.87 (at the time of writing). Goldman Sachs expects more growth to come, and has put a buy rating and $16.50 price target on its shares.
While Google will continue to dominate market share for some time to come, more AI players in the market will steadily increase competition. And ultimately any shift in power presents a good opportunity for AI businesses and their ASX stock.
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