Google-owner's shares have surged 12% and gained $160 billion in market value since unveiling its latest AI tools at a developer's conference 

The stock's underperformance against peers like Apple and Microsoft has been erased due to the successful AI product deployment 

Investors are now more confident in Alphabet's position as a winner in the AI landscape 

Bill Ackman's Pershing Square and other firms bought more than 10 million of Alphabet's Class A and Class C shares worth about $1.2 billion in the first quarter 

Alphabet's outperformance continued with a 3.3% rise after the disclosure of Pershing Square's stock purchase 

Despite missing out on gains in the AI sector, Alphabet's announcement of a conversational search engine and broader availability of its AI-powered chatbot has generated excitement 

OpenAI's ChatGPT's rapid growth is seen as a potential threat to Google's search business dominance 

Google's presentation at the developer's conference has alleviated concerns among Wall Street analysts regarding the stock's "AI overhang."