Microsoft recently hired key leadership to bolster its artificial intelligence (AI) research team, which should add a certain degree of bullishness to the stock. That said, traders may want to play the upside with the Direxion Daily MSFT Bull 1.5X Shares (MSFU) to get an extra 50% dose of leverage.
The software giant recently announced that it hired former OpenAI CEO Sam Altman and OpenAI president Greg Brockman to shore up its AI team. Microsoft has already been a key investor and partner with OpenAI, so there’s already a level of trust established in these key hiring moves.
Microsoft CEO Satya Nadella released an X post this past weekend, exuding excitement for the recent hires:
We remain committed to our partnership with OpenAI and have confidence in our product roadmap, our ability to continue to innovate with everything we announced at Microsoft Ignite, and in continuing to support our customers and partners. We look forward to getting to know Emmett…
— Satya Nadella (@satyanadella) November 20, 2023
AI should continue to remain a hot-button topic heading into the new year and if Microsoft wants to be able to compete with the other big tech players, then it will certainly require the talent. This should give bullish Microsoft investors something to cheer about.
“We’re extremely excited to share the news that Sam Altman and Greg Brockman, together with colleagues, will be joining Microsoft to lead a new advanced AI research team,” Nadella said. “We look forward to moving quickly to provide them with the resources needed for their success.”
More Potential Upside for Microsoft
Last year, interest rates were a thorn in the side of big tech. The recent rate pause by the Federal Reserve is injecting a healthy dose of optimism and increased hope that looser monetary policy could finally be on the way.
This could potentially give big tech a further boost heading into 2024, and in turn, provide more upside to Microsoft. As 2023 comes to an end, there’s already anticipation that rate cuts will come sooner rather than later.
“The markets are starting to really believe that the Fed is finished with interest rates,” said Jamie Cox, managing partner at Harris Financial Group, per a CNBC report.
“Now the market is pricing in … the probability cone about when rate cuts will happen, and I think it’s closer than people really appreciate. And that’s why you’ve seen markets have stabilized quite a bit in the last month and a half,” Cox said.
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