Microsoft shares have best week in nearly 8 years after the demise of SVB, popularity of OpenAI’s ChatGPT
Shares of Microsoft Corp. Best weekly gain in nearly 8 years as the fall of Silicon Valley Bank and the popularity of OpenAI’s ChatGPT spurred investors to a longstanding tech name interested in the big thing. next.
Microsoft
MSFT,
stocks ended Friday with a 12.4% gain for the week, their best weekly gain since. April 24, 2015, when the stock is up 15% for the week after the company predicted growth in its cloud business.
Read: OpenAI launches ‘safer’ AI, GPT-4; Morgan Stanley one of his first clients
The tech giants weren’t just beneficiaries of last Friday’s closure of Silicon Valley Bank, as investors seek safety in established tech namesbut also benefit from a substantial investment in private artificial intelligence company Open AI, is quickly becoming a household name as its AI ChatGPT model grows in popularity.
Microsoft has incorporated ChatGPT into its Bing search engine and Office 365 Copilot, which combines large language models with user data to increase productivity. The Copilot system uses the latest version of ChatGPT, GPT-4, which OpenAI released last week.
While the Federal Deposit Insurance Corporation and the Federal Reserve took emergency measures to insure deposits over $250,000 at Silicon Valley Bank last weekend, turmoil continued in the regional banking sector, such as First Republic Bank.
FRC,
Infusion of $30 billion from the banking sector, pushed investors to the safety of long-established tech names, as the Nasdaq rallied 4.5% for the week compared with a 1.6% gain for the S&P 500.
Read: Y Combinator’s Garry Tan Says Silicon Valley Bank Failure Is An Extinction Level Event For Startups
Over the past 12 months, Microsoft stock has fallen 5.4%, while the iShares Expanded Tech-Software ETF
IGV,
down 13.4%, the Dow Jones Industrial Average
DIA,
down 7.6%, S&P 500
SPX,
down 11.2% and the tech-heavy Nasdaq Composite Index
COMPUTER,
down 14.6%.
