The share of the owner of “Google” rose 9%, compensating for the weak performance recorded previously against “Apple” and “Microsoft”

Alphabet Inc. is back in the arena of artificial intelligence competition.

Shares of the company that owns “Google” have declined compared to their counterparts from other major companies this year, amid fears that it may lose its competitive position in terms of selling artificial intelligence products, but since it unveiled its latest tools in the field of artificial intelligence during a developer conference last week. Its shares rose 9%, adding $115 billion to its market value and offsetting previously underperformance against rivals Apple and Microsoft.

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

Enthusiastic about building the field of artificial intelligence, Alphabet has largely missed out on the opportunities for huge gains reaped by its peers in the technology sector, especially in light of the exponential growth of OpenAI’s ChatGBT application that It poses a threat to its search engine dominance. So last week’s announcement of a more conversational search engine and that the company is making intelligence-assisted chatbots more widely available came at the right time.

Alphabet shares rise with the support of its revenue exceeding market expectations

If the company succeeds in integrating new AI features into its products that serve hundreds of millions of users, it should build more confidence in paid AI in the future, Nowak wrote in a research note after the presentation.

For Bill Ackman’s Pershing Square hedge fund, the share gains came at the right moment. On Monday, the fund disclosed that it purchased more than 10 million Alphabet Class A and Class C shares during the first quarter, worth about $1.2 billion at current prices.

Others have benefited from this situation. Google co-founder Sergey Brin bought nearly $600 million worth of Alphabet shares on Thursday, which was the week in which his wealth increased in more than two years.

Even after such a strong rise, Alphabet’s value isn’t huge compared to its peers. The stock value is 19 times relative to expected earnings, the highest in months, yet it’s still much cheaper than Microsoft and Apple, which are priced at 29 and 27 times, respectively.

$ 17 billion to the founders of “Google” from raising artificial intelligence stocks

Alphabet’s rise

There are still many skeptics. Rob Sanderson, an analyst at Loop Capital, said continued concerns about AI risks will prevent an increase in Alphabet’s cheaper market valuation. He downgraded the stock from “buy” to “hold” on Monday, though he sees the company as a major beneficiary of AI adoption over the long term.

He wrote, “We do not consider this an existential threat to (Google), but this trend will become a competitive force against its dominance in connecting users with information.”

Alphabet’s rally last week pushed its RSI beyond the 70 level, which some technical analysts suggest the stock may have gone too far too quickly. Shares were trading up 0.4% on Tuesday, still in overbought territory.

Top technology company news

Artificial intelligence has been the top concern of executives this earnings season, and it is increasingly becoming a determining factor in the performance of corporate stock prices.

X Corp., owned by Elon Musk and Twitter’s parent company, has made its first acquisition, buying a talent-sourcing and talent services company called Laskie, according to a person familiar with the matter.

Michael Perry, the money manager who was the star of “The Big Short” and is now the “Big Long” star of China stocks, has increased his bullish bets on shares of two e-commerce giants, JD.com. (JD.com Inc) and Alibaba Group Holding, even as other hedge funds reluctantly accept the return of deals as the country reopens.

Microsoft’s offer of $69 billion to acquire Activision Blizzard Inc. has returned to the fore, after the European Union granted its approval to complete one of the largest deals in history.

Nelson Peltz, the activist investor who launched and then dumped a proxy struggle earlier this year in The Walt Disney Co., recently increased his stake in the company, according to a person familiar with his holdings in it.

Rakuten Group Inc. plans to issue new shares to raise 332.2 billion yen ($2.4 billion) to shore up capital depleted by its loss-making mobile communications unit.