Microsoft’s stock achieved a historic peak on Monday following the announcement that Sam Altman, the former CEO of OpenAI, will be joining the company to lead its artificial intelligence innovation division.
On Monday, the shares of the tech giant surged by over 2%, reaching $378.81, before experiencing a slight pullback. To establish an all-time high closing price, the stock needs to finish the trading day above $376.17.
The stock of Microsoft experienced a 1.7% decline on Friday, coinciding with Sam Altman’s removal from his position at OpenAI due to a boardroom coup. Microsoft is the largest investor in the artificial intelligence firm, having made a $13 billion investment in the company.
Greg Brockman, a co-founder of OpenAI who resigned following Altman’s dismissal, is also joining Microsoft.
Altman’s appointment put an end to days of speculation regarding his potential return to the company after his dramatic departure. Emmett Shear, the former CEO of Amazon-owned streaming service Twitch, will temporarily replace Mira Murati as OpenAI’s chief technology officer.
Microsoft’s shares have risen by approximately 56% this year, making it one of the “Magnificent Seven” stocks responsible for a significant portion of the market’s returns this year. This surge is driven by Wall Street’s belief that artificial intelligence represents the next major technological breakthrough.
Dan Ives, a tech analyst at Wedbush Securities, reaffirmed his $425 price target for Microsoft’s stock following the appointments of Altman and Brockman.
“We now see Microsoft in an even stronger position in the field of AI with Altman and Brockman on board,” Ives noted in a Monday statement.
