(Bloomberg) — Alphabet Inc. shares closed out their biggest quarterly gain in 20 years, the latest reflection of how investors are turning more positive on the Google parent as it strengthens its foothold in artificial intelligence.

The stock gained 38% this quarter, its biggest such gain since mid-2005. The move brings Alphabet’s year-to-date gain to nearly 30%, compared with a 17% rise in the Nasdaq 100 Index. The stock fell 0.4% on Tuesday.

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Recent gains followed a long-awaited antitrust ruling that avoided the most punitive measures sought by regulators, including the sale of Alphabet’s Chrome browser. The ruling came in the wake of Alphabet’s second-quarter earnings, which showed that demand for artificial intelligence products is lifting sales.

Investors have grown more confident about Alphabet’s position with AI, even as OpenAI’s ChatGPT introduces new features. The company on Tuesday said it is rolling out visual search in AI mode, and The Information recently reported that Meta Platforms Inc. has held discussions about using Google’s AI models to improve its ad business.

In a sign of improved sentiment, MoffettNathanson wrote that the “combination of market leadership, diversification and scale positions Alphabet not only as a winner in the GenAI era but as a company that should rightly be considered for the title of most valuable company in the world.”

The rally in Alphabet shares briefly resulted in the company rising above a $3 trillion market capitalization, although it receded from that peak, and currently has a valuation of around $2.93 trillion.

(Updates to market close.)

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