: Microsoft stock set for best week in nearly 8 years following SVB collapse, OpenAI’s ChatGPT popularity

by | Mar 17, 2023 | Stock Market

Microsoft Corp. shares were on track for their best week in nearly eight years as the collapse of Silicon Valley Bank and the popularity of OpenAI’s ChatGPT drove investors to an established tech name with an interest in the next big thing. Microsoft
shares were up 12.7% for the week Friday, heading for their best week since April 24, 2015, when shares gained 15% in a week.

Read: OpenAI launches ‘safer’ AI, GPT-4; Morgan Stanley one of its first customers The tech giant was not only a beneficiary of last Friday’s closing of Silicon Valley Bank, as investors sought safety in established tech names, but also benefited from its significant investment in privately held artificial-intelligence company Open AI, which is quickly becoming a household name as its ChatGPT AI model gains in popularity. Read: SVB fallout likely to affect some software sales in the short term, and how startups are financed long term Microsoft is already incorporating ChatGPT into its Bing search engine and Office 365 Copilot, which combines large-language models with a user’s data to increase productivity. The Copilot system uses ChatGPT’s latest version, GPT-4, which OpenAI released this past week. While the Federal Deposit Insurance Corp. and Federal Reserve took emergency measures to insure deposits over $250,000 at Silicon Valley Bank last weekend, continued turbulence in the regional banking sector, like First Republic Bank’s
$30 billion infusion from the banking sector, has pushed investors to the security of established names in the tech sector, as the Nasdaq gained 4.5% on the week compared with a 1.6% gain on the S&P 500 index. Read: Silicon Valley Bank’s failure is an extinction-level event for startups, says Y Combinator’s Garry Tan Over the past 12 months, Microsoft shares have declined 5%, while the iShares Expanded Tech-Software ETF
is down 13%, the S&P 500 index
is off 11%, and the tech-heavy Nasdaq Composite Index
is down 14%.

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