Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has had an impressive run so far this year, riding the rapid adoption of artificial intelligence (AI) and a broad-based recovery of tech stocks. Shares of the search giant are up 45% so far in 2023, roughly three times the 15% gains of the S 500. This is in stark contrast to last year, when the stock lost more than 39%. 

The biggest catalyst lifting Alphabet this year was the company's better-than-expected financial results, which illustrated once and for all that the advertising market is on the road to recovery. This gave investors a much-needed boost of confidence that the broader macroeconomic headwinds casting a pall over Alphabet's performance might finally be easing.

What are the broader implications for investors who sat out Alphabet's current rally? Should they buy now in anticipation of additional gains or avoid the stock because of its recent run-up? Let's see what the evidence suggests.

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Source Fool.com