Image source: https://edition.cnn.com/2023/11/20/investing/microsoft-stock-record-high-altman-openai/index.html
In a surprising turn of events, Microsoft Corporation witnessed a historic surge in its stock value on Monday, reaching an unprecedented peak following the announcement of Sam Altman’s appointment as the head of its artificial intelligence innovation division.
The former chief executive of OpenAI, Altman’s return to the tech giant sent shares climbing by 2.1%, concluding the day at an all-time high of $377.44, surpassing the previous record of $376.17.
The surge comes on the heels of a 1.7% decline in Microsoft shares on Friday, coinciding with Altman’s abrupt departure from OpenAI due to a boardroom coup. Notably, Microsoft holds a significant stake in OpenAI, with a substantial $13 billion investment in the leading artificial intelligence firm.
In a noteworthy move, Greg Brockman, co-founder of OpenAI, who resigned in the wake of Altman’s removal, is also set to join Microsoft. This strategic alignment of talent marks a pivotal moment for Microsoft, signaling a strengthened focus on advancing artificial intelligence capabilities.
The hiring of Altman, after days of intense speculation about his potential return to Microsoft, has been met with optimism by industry experts. Emmett Shear, former CEO of Amazon-owned Twitch, will serve as the interim chief executive at OpenAI, succeeding Mira Murati.
Microsoft’s shares have witnessed a remarkable 56% surge year-to-date, solidifying its position among the “Magnificent Seven” – a group of companies driving substantial market returns. Wall Street’s enthusiastic anticipation of the pivotal role of artificial intelligence in the tech industry has been a key driver of Microsoft’s success.
Tech analyst Dan Ives from Wedbush Securities reiterated his confidence in Microsoft, maintaining a $425 price target for the company’s stock following the strategic appointments of Altman and Brockman. Ives stated, “We view Microsoft now even in a stronger position from an AI perspective with Altman and Brockman” in a note released on Monday.
The positive momentum extended beyond Microsoft, as other members of the “Magnificent Seven,” including Nvidia, experienced a boost in their stock values. Nvidia shares climbed 2.3%, concluding the trading session at $504.20, setting a new record-high close for the chipmaker. With Microsoft at the forefront of AI innovation, the tech industry eagerly awaits the unfolding impact of these strategic moves on the future landscape of artificial intelligence.