In a remarkable rally, Alphabet witnessed a nearly  seven percent surge on Wednesday, displaying its resilience in the uncertain advertising market and standing strong against competition from Microsoft‘s AI-powered search engine, Bing.

With premarket movements pointing to significant gains, the world’s fourth most valuable company was poised to add over $100 billion to its market capitalization. This impressive growth comes as Alphabet’s shares have already soared by 39 percent this year, primarily driven by the buzz surrounding artificial intelligence (AI).

Financial analysts on Wall Street applauded the company’s better-than-expected quarterly earnings, highlighting the robust performance of Google Search and steady growth in their cloud business.

These factors have positioned Alphabet favorably to take on Microsoft in the AI arena.

Refuting any notion of an AI comeback, experts at Jefferies, one of the 22 brokerages that raised their price targets, emphasized that Google has been an AI-first company for the past seven years, Reuters reported.

Not to be outdone, Microsoft also surpassed expectations, with impressive growth observed in its Azure cloud unit, making it well-positioned to capitalize on the rising interest in AI.

With Google Search’s dominance and the promising prospects of its AI endeavours, Alphabet is poised to maintain its upward trajectory, leaving investors optimistic about the company’s prospects.