Cloudflare (NYSE: NET) stock made a remarkable recovery beginning in May, surging 54% since it suffered a sharp sell-off on April 28 following the company's first-quarter 2023 results. Share prices of the internet infrastructure services provider fell 21% in a single day when investors panicked over the news of the company's slowing growth. Cloudflare not only issued tepid guidance for the current quarter, but it also reduced its full-year forecast. And yet, investors seem quick to forget the past, and Cloudflare stock is rallying once again.

Let's see why that may be the case.

Artificial intelligence (AI) was a key theme of Cloudflare's past two earnings conference calls. The company pointed out on its February earnings call that a "leading generative AI company signed a one-year $1 million deal."

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Source Fool.com