Microsoft stock was all-time high when they hires Sam Altman
Microsoft stock was all-time highof the tech behemoth rose 2.1% to an all-time high close of $377.44.
On Friday, Microsoft’s shares fell 1.7% in response to Sam Altman’s ouster from his position at OpenAI, in what was a boardroom coup which resulted in Altman being removed from his position. One of the company’s largest investors is Microsoft, with a $13 billion investment in the artificial intelligence company, making it the company’s biggest stakeholder.
As part of the deal, Greg Brockman, who co-founded OpenAI and resigned after Altman was fired, is also joining Microsoft.
There had been speculation for days that Altman could return to the company after his dramatic firing as chief executive. Altman’s hiring has ended those speculations. It has been announced that Emmett Shear will take over as interim chief executive officer of OpenAI from Mira Murati, who was the chief technology officer of Amazon’s streaming service Twitch.
There has been a 56% increase in the value of Microsoft’s stock this year. The stock is one of the “Magnificent Seven” that have powered the lion’s share of the market’s returns thisboosted by Wall Street’s bet that artificial intelligence is the next big thing in tech.
Wedbush Securities’ Dan Ives reiterated his $425 price target for Microsoft’s stock following Altman and Brockman’s hirings.
In his note on Monday, Ives wrote, “We view Microsoft as being in an even stronger position from an AI perspective with Altman and Brockman at the company.”
There were several other members of the “Magnificent Seven” who saw their stocks rise on Monday. Chipmaker NVIDIA’s shares rose 2.3% to $504.20 ahead of Tuesday’s earnings announcement, marking a record close.