This week, Alphabet Inc., the parent company of Google, had a 4.9 percent increase in shares after announcing the launch of Bard, an AI chatbot, across Europe and Brazil. This news allayed concerns about international regulatory challenges.

The stock was on track for its highest one-day percentage gain since early February when it launched the product at its most recent price of $124.73. During the session, the shares also reached their highest level since mid-June.

Alphabet stock outperformed the market as a whole, with the S&P 500 index rising 0.6 percent as a result of data showing hints of slowing inflation.

Local privacy watchdogs had previously prevented Bard from going live in the European Union, but Google announced that it has spoken with them to reassure them on matters pertaining to openness, choice, and control.

The launch in Europe and Brazil, as well as Bard's growth into additional languages, were both factors in Thursday's surge, according to Danni Hewson, head of financial analysis at investment firm AJ Bell.

The debut of Bard in Europe and Brazil, according to B Riley Wealth's senior market strategist Art Hogan, "marks the product's most significant expansion since its February launch and pits it against Microsoft Corp."

On Thursday, Microsoft, a supporter of the competing AI ChatGPT, gained 1.1 percent.

Since February, investor interest in generative AI has greatly increased the value of Alphabet shares, which are currently up about 41 percent for the year. Microsoft stock has increased by 42 percent so far in 2023.

Additionally on Thursday, TD Cowen increased its price objective for Alphabet shares from $130 to $140, noting the company's anticipated improvement in search revenue growth.