Microsoft’s stock surged to a new peak after the announcement that Sam Altman, the former CEO of OpenAI, would be joining the company to lead its artificial intelligence innovation division.
The tech giant’s shares climbed 2.1% to hit a record closing high of $377.44 on Monday, surpassing the previous record of $376.17.
This uptick followed a 1.7% dip in Microsoft’s shares on Friday, coinciding with Altman’s removal from OpenAI through a boardroom shakeup.
Microsoft holds the largest stake in the AI firm, having invested $13 billion in OpenAI.
Greg Brockman, a co-founder of OpenAI who resigned after Altman’s dismissal, is also making the move to Microsoft.
Altman’s return to the company put an end to speculations about his potential comeback after the dramatic turn of events.
Emmett Shear, the former CEO of Twitch, is set to step in as interim chief executive at OpenAI, replacing Mira Murati, the chief technology officer.
For the year, Microsoft’s shares have soared approximately 56%, cementing its position as one of the key stocks driving significant market returns.
This momentum has been fueled by the financial sector’s belief in the significant potential of artificial intelligence in the tech industry.
Tech analyst Dan Ives from Wedbush Securities reaffirmed a $425 price target for Microsoft’s stock following the appointments of Altman and Brockman.
He expressed confidence in Microsoft’s stronger position in the AI landscape, stating, “We view Microsoft now even in a stronger position from an AI perspective with Altman and Brockman” joining the company.
The positive impact extended to other major tech players in the market’s “Magnificent Seven.”
Nvidia, ahead of its upcoming earnings report on Tuesday, saw its shares climb 2.3% to a record-high close of $504.20, reflecting the optimistic sentiment around the chipmaker.
Source-CNN
