New York
CNN
—
Microsoft stock reached a record high on Monday after the company said that Sam Altman, former chief executive of OpenAI, to head its artificial intelligence innovation leg.
Shares of the tech behemoth rose 2.1% to an all-time high close of $377.44 on Monday, beating the previous record of $376.17.
That comes after shares of Microsoft fell 1.7% on Friday, when Sam Altman was at OpenAI in a boardroom coup. Microsoft is the artificial intelligence firmâs biggest stakeholder, with a $13 billion investment in the company.
Greg Brockman, who co-founded OpenAI and quit after Altmanâs firing, is also joining Microsoft.
Altmanâs hiring ended days of speculation that the former chief executive could return to the firm after his dramatic firing. Emmett Shear, former CEO of Amazon-owned streaming service Twitch, will replace OpenAI chief technology officer Mira Murati as interim chief executive.
Microsoft shares are up about 56% for the year. The stock is one of the âMagnificent Sevenâ that have powered the lionâs share of the marketâs returns this year, boosted by Wall Streetâs bet that artificial intelligence is the next big thing in tech.
Dan Ives, tech analyst at Wedbush Securities, reiterated his $425 price target for Microsoftâs stock following Altmanâs and Brockmanâs hires.
âWe view Microsoft now even in a stronger position from an AI perspective with Altman and Brockmanâ at the company, Ives wrote in a note on Monday.
Other members of the âMagnificent Sevenâ saw a boost on Monday. Nvidia shares gained 2.3% to end the trading session at $504.20 ahead of its earnings due on Tuesday, notching a record-high close for the chipmaker.