Microsoft Soars to Record-Breaking Heights with Addition of former OpenAI CEO Sam Altman

Microsoft's stock surged on Monday as the company announced the appointment of Sam Altman, former CEO of OpenAI, to lead its artificial intelligence innovation division. The tech giant's shares climbed more than 2% to reach $378.81 before experiencing a slight dip. In order to achieve a new record closing high, the stock must finish the trading day above $376.17.

On Friday, Microsoft's shares experienced a 1.7% decline due to Sam Altman's removal from his position at OpenAI during a boardroom coup. Microsoft holds the largest stake in this artificial intelligence company, with a significant investment of $13 billion. Following his departure, Greg Brockman, the co-founder of OpenAI, has also decided to join Microsoft.

Altmans hiring brought an end to days of speculation about the possible return of the former chief executive after his controversial dismissal. Emmett Shear, the former CEO of Twitch, a streaming service owned by Amazon, will take over from Mira Murati as interim chief executive of OpenAI.

Microsoft's shares have seen a 56% increase this year. The stock is part of the "Magnificent Seven," a group of companies that have driven the majority of the market's returns this year. Wall Street's belief in the potential of artificial intelligence has contributed to the stock's success, as it is considered the next major trend in the tech industry.

In a note on Monday, Dan Ives, a tech analyst at Wedbush Securities, reaffirmed his $425 price target for Microsoft's stock in light of the recent hires of Altman and Brockman. Ives stated that Microsoft has now strengthened its position in the field of AI with the addition of Altman and Brockman.