Microsoft (NASDAQ:MSFT) is well-known as being one of the world’s foremost software and cloud players. In the world of Big Tech, Microsoft’s long-term growth trajectory is among the best we’ve seen in recent decades. Accordingly, it should be no surprise to many long-term investors to see MSFT stock make a fresh all-time high today.
At the time of this writing, MSFT stock is in the green by about 2%, although there is still time in the trading session to beat the stock’s surge to over $378 per share today. We’ll have to see where this stock closes out at, but it has been an incredible ride to be sure.
Today’s surge comes on some intriguing company-specific news that has captured the attention of tech investors. Following the incredible drama this past weekend at OpenAI — the artificial intelligence (AI) company Microsoft has invested billions in and partnered with on key projects — former CEO Sam Altman’s firing has led to Microsoft quickly hiring him.
Given Microsoft’s focus on carving out a niche in the world of AI, this move seems to be a big coup. Let’s dive into what investors may want to make of the news.
MSFT Stock Surges on Sam Altman Hiring
Microsoft’s future as an AI powerhouse really relied on its partnership with OpenAI to work. Accordingly, following the news that Sam Altman was ousted as CEO on Friday, shares of MSFT stock took a hit as investors questioned the company’s future in this space.
Now with Altman on Microsoft’s payroll, however, the dynamics have shifted drastically. Microsoft has become an AI powerhouse overnight, with the presumption that a number of other executives and employees that left OpenAI in solidarity with Altman could join Microsoft as well.
This story isn’t completely over yet, so we’ll have to see how everything shapes up. But suffice it to say, investors are now speaking loudly with their wallets that they want more exposure to MSFT stock and its potential AI upside.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
