Alphabet Adds $115 Billion in Value After Defying AI Doubters

Alphabet Inc. is back in the game. The artificial intelligence game, that is.

Shares in the Google owner had lagged behind other mega caps this year amid fears it was losing ground in the race to deploy AI products. Yet since it unveiled its latest AI tools at a developer’s conference last week, the stock has advanced 12%, adding $160 billion in market value and erasing its underperformance against peers like Apple Inc. and Microsoft Corp.

“Investors are questioning whether Alphabet is a winner or loser as AI changes the landscape,” said Jason Benowitz, senior portfolio manager at CI Roosevelt. “This puts them more solidly in the winner camp.”

Alphabet continued its outperformance on Tuesday, rising 3.3% after 13F filings showed that Bill Ackman’s Pershing Square was among firms that bought the stock in the first quarter. Late on Monday, the hedge fund disclosed the purchase of more than 10 million of Alphabet’s Class A and Class C shares in the first quarter, worth about $1.2 billion at current prices.