Microsoft at an All Time High

Big news is happening at Microsoft (MSFT)! It’s hitting an all-time high but that’s half the story. Microsoft’s partnership with OpenAI is in jeopardy. OpenAI’s Board fired CEO Sam Altman and the fallout has been swift and brutal. Senior leadership quit and almost all employees are about to leave if Altman doesn’t return.

Overnight one of the biggest high-tech companies in Silicon Valley collapsed. Making this story even more incredible is what Microsoft did with this news. Microsoft hired Altman to head up a new research division and offered a job to any OpenAI employee. In one fell swoop they picked up the brainpower of OpenAI.

This is a HUGE competitive advantage for Microsoft in the Generative AI space. It also means they can kill any partnership they have with OpenAI and just build their products in-house. With news that Microsoft is developing its own AI chips, I’m even more bullish on Microsoft.

Price-wise, it’s been moving higher since the end of October and YTD it’s up 57%. It pays dividends (a plus for passive investors) and checks all the boxes for trend followers (at least for me). Microsoft is a sold blue chip technology company whose earnings keep growing.

Seasonally speaking, the best time to buy MSFT is between November and April, based on seasonal analysis. Granted, Generative AI could be a fad and Microsoft’s bet could turn into a loss, but that’s the thing with technology. Of course, hindsight is always 20/20, but to get the gains (or losses), you have to be in the game.