One of the big themes of 2023 -- perhaps the theme of the investing year -- was artificial intelligence (AI). Every company, small and large, seems to be investing in AI following the revolutionary developments from OpenAI and its ChatGPT product.

One company that initially felt threatened by these AI developments was (NASDAQ: GOOG), the parent company of Google. Microsoft invested over $10 billion in OpenAI, hoping to take advantage of the latest version of ChatGPT and steal market share from the dominant search engine provider (as well as the tens of billions in profits that search engine generates each year for Alphabet).

Alphabet stock started 2023 in the dumps. But after posting strong earnings, releasing competitive AI products, and proving it could retain its market share despite new competition from Microsoft and OpenAI, Alphabet stock shot up like a rocketship in 2023. Over the last 12 months, the stock is up 55.6%, crushing the returns of the S 500 index.

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Source Fool.com