MS Joined by Altman and Nvidia Ahead of Earnings, Stock Hits All-Time High

Microsoft (MS), which recruited former OpenAI CEO Sam Altman, and Nvidia, whose earnings report is due this week, both hit record highs in their stock prices.

[Image source=AFP Yonhap News]

On the 20th (local time) at the New York Stock Exchange, Microsoft's stock closed at $377.44 per share, up 2.05% from the previous session. This is the highest level since its initial public offering (IPO) in 1986. MS's market capitalization surpassed $2.8 trillion, approaching the $3 trillion mark.

The rally was triggered by MS CEO Satya Nadella's announcement before the market opened that Altman, who was dismissed from OpenAI, had joined Microsoft. Altman, known as the "father of ChatGPT," along with Greg Brockman, co-founder of OpenAI who left after Altman's dismissal, will lead a new advanced AI research team at MS.

The market expects the addition of Altman and Brockman to significantly enhance MS's competitiveness in artificial intelligence (AI). Furthermore, OpenAI employees who opposed Altman's dismissal have indicated the possibility of collective resignation and joining MS subsidiaries through a petition.

Dan Ives, an analyst at Wedbush, said, "MS has hired a key asset (Altman) that investors want to hear about," adding, "Now, with Altman and Brockman, MS is in a stronger position from an AI perspective." Timothy Horan of Oppenheimer described it as "a win-win for everyone." Kurt Marten of Evercore ISI also called it "a clear victory for MS."

[Image source=Reuters Yonhap News]

Nvidia, a leading AI stock, also surpassed the $500 mark ahead of its earnings announcement the next day. Nvidia's stock closed at $504.09 per share, up 2.25% from the previous session. Nvidia's stock, which continues to break record highs, has surged more than 240% this year alone, fueled by the AI rally.

According to FactSet, Nvidia's third-quarter revenue is estimated at $16.19 billion, with earnings per share of $3.37. This represents a sharp increase compared to the same period last year ($5.93 billion, $0.58 per share). Wall Street is particularly watching Nvidia's guidance for the fourth quarter. Previous strong guidance from Nvidia has directly led to stock price increases.

Vivek Arya, an analyst at Bank of America (BoA), said, "I expect Nvidia's earnings to exceed consensus," and added, "Nvidia's valuation remains strong." However, some voices express concerns about the potential for further gains, considering the sharp rise this year and recently announced additional AI semiconductor chip regulations targeting China.

Meanwhile, ahead of the Thanksgiving holiday this week, the U.S. New York Stock Exchange closed higher, buoyed by rallies from MS and Nvidia. The tech-heavy Nasdaq index rose 1.13% to close the session. The Dow Jones Industrial Average and the S&P 500 increased by 0.58% and 0.74%, respectively.

This content was produced with the assistance of AI translation services.