🚨 NEW: Microsoft secures a 27% stake (~$135B) in OpenAI, which now values OpenAI at $500B. https://t.co/f0tPSlv9Uo ...

Core Insights - Microsoft stock has reached a record level, positioning the company for a market value exceeding $4 trillion [1] - The current trading price of Microsoft shares is $545.62, reflecting a 2.7% increase, which would mark an all-time closing high [1] - Microsoft has consistently aimed for the $4 trillion target, having been on track in July and August, although it experienced some gains loss before market close during those months [2]

Core Insights - Microsoft Corporation (NASDAQ:MSFT) is identified as a promising AI stock, with a "Buy" rating maintained by BofA analyst Brad Sills and a price target of $640 [1][2] Group 1: Investment Strategy and Infrastructure - The company is strategically expanding its AI infrastructure while balancing capacity scaling and energy independence [2] - Microsoft is involved in the Aligned Data Centers acquisition alongside BlackRock and Nvidia, which enhances its compute investments visibility [3] - The company has significantly increased its data center capacity, adding over 2 gigawatts in the past year, contributing to its strong cash flow returns [5] Group 2: Financial Performance - Microsoft reported a gross property, plant, and equipment, and capitalized leases of nearly $370 billion at the end of fiscal 2025, a $260 billion increase since fiscal 2020 [5] - Gross cash flow rose from $60 billion in 2020 to over $140 billion in 2025, indicating robust financial health [5] - The company's returns on capital are consistently in the high 20s, reflecting attractive returns on its substantial investments [5] Group 3: Market Opportunities - There is potential for faster commercial growth in Office products due to the momentum in E3/E5 adoption and demand for Copilot [4] - Microsoft is well-positioned to capitalize on the AI cycle in both application and infrastructure markets [4]

Market Overview - The US stock market opened slightly higher, with the Dow Jones up 0.65%, S&P 500 up 0.31%, and Nasdaq up 0.54%, all reaching new historical highs [2] - As of the report, the Dow Jones was up 0.46%, S&P 500 was up 0.01%, and Nasdaq was up 0.27% [2] Microsoft - Microsoft's stock rose over 3%, with its market capitalization surpassing $4 trillion, following a contract with OpenAI for an additional $250 billion in Azure services [3] Apple - Apple's stock price increased by 0.2%, briefly pushing its market capitalization above $4 trillion, making it the third US company to reach this milestone, but later fell to a decrease of 0.06% [4] - According to a report by Counterpoint, the early sales of Apple's new iPhone 17 series in China and the US have outperformed the iPhone 16 series [5] - The iPhone 17 sold 14% more in the first 10 days post-launch compared to the iPhone 16 series, with the standard version's sales in China nearly doubling [6] - The iPhone 17 features improved specifications while maintaining the same price as the iPhone 16, contributing to its strong market demand [6][9] - A report from Deepwater highlighted that the iPhone 17 has initiated Apple's strongest sales momentum since the COVID-19 pandemic, with longer wait times indicating high consumer demand [9]

BREAKING: Stocks Rumble Higher As PayPal, UnitedHealth Rally Microsoft stock is on two IBD stock lists: Long-Term Leaders and Tech Leaders. Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks. YOU MAY ALSO LIKE: Qualcomm Enters AI Data Center Market, Signs Humain As First Customer Microsoft (MSFT) stock jumped on Tuesday after the software giant reached a deal with OpenAI that values its stake in the artificial intelligence firm at $135 billio ...

Core Insights - OpenAI has completed a capital restructuring to establish a structure where a non-profit organization holds the for-profit business [1] - The non-profit organization is now called OpenAI Foundation, which holds approximately $130 billion in equity of the for-profit division [1] - The for-profit division has been restructured into a public benefit corporation named OpenAI Group PBC [1] Ownership Structure - Under the new structure, OpenAI Foundation will own 26% of the for-profit division [1] - Current and former employees, along with investors, collectively hold 47% of the for-profit division [1] Valuation and Investment - Microsoft has expressed support for the restructuring and estimates its investment in OpenAI Group PBC to be valued at approximately $135 billion [1] - This valuation corresponds to 27% of the diluted shares of the company [1]

Core Insights - OpenAI has completed a capital restructuring to simplify its company structure, establishing nonprofit control over its for-profit operations and paving the way for significant resource acquisition ahead of the arrival of Artificial General Intelligence (AGI) [1][3] Summary by Sections Organizational Changes - The nonprofit entity has been renamed OpenAI Foundation, which holds shares in the for-profit entity now called OpenAI Group PBC, with an estimated valuation of approximately $130 billion [3] - The restructuring is considered one of the most mission-driven governance structures in the industry, allowing both the foundation and the for-profit entity to pursue the core mission of ensuring AGI benefits all of humanity [4] Financial Commitments - The foundation plans to invest $25 billion, focusing on two main areas: health and disease breakthroughs, and AI resilience technology solutions [6] - This initiative builds on a previous $50 million "human-centered AI fund" and recommendations from a nonprofit committee [3] Future Outlook - OpenAI Foundation and OpenAI Group will collaborate to address the complex challenges and opportunities presented by AI, including the social applications of intelligent technology and enhancing global cooperation [5] - The company believes that the most powerful technologies must be developed in a way that reflects global common interests [5] Partnership with Microsoft - Microsoft and OpenAI have entered a new phase of collaboration, signing a formal agreement to deepen their partnership and support the capital restructuring [8] - Post-restructuring, Microsoft's investment value in OpenAI Group PBC is approximately $135 billion, representing about 27% of diluted shares [8] - The new agreement allows both companies to maintain their collaboration while independently driving innovation and growth [9] Intellectual Property and Governance - Microsoft retains exclusive rights to OpenAI's intellectual property and Azure API until AGI is achieved, with rights extended until 2032 under certain conditions [10] - OpenAI is permitted to collaborate with third parties on product development, with specific provisions for API products to be exclusive to Azure [10] - OpenAI can provide API services to U.S. government national security agencies without cloud service provider restrictions [10]

half a percent at levels of 115,000. All right. On that note, let's just get to Kevin Green, who joins me now for a snapshot and a look across some of the main stories.Obviously we've got Microsoft reporting earnings tomorrow, but the stock has popped this morning. As I mentioned after announcing a new pact with open AI. Talk us through what you're seeing there in the price action.KG yeah, you are seeing a really nice move to the upside when it comes to Microsoft. Now, open AI actually has completed its rec ...

Core Insights - Apple briefly surpassed the $4 trillion market capitalization mark alongside Microsoft on Tuesday [1] Company Performance - Apple reached a market cap of $4 trillion, indicating strong investor confidence and robust financial performance [1] - Microsoft also achieved the same market cap milestone, reflecting its competitive position in the technology sector [1]

Microsoft (MSFT) and OpenAI (OPAI.PVT) announced on Tuesday that they have reached a new agreement that lets the ChatGPT developer move forward with its plans to transform into a for-profit public benefit corporation. Under the new agreement, Microsoft will hold 27% of the OpenAI Group PBC, valued at roughly $135 billion, while OpenAI's nonprofit arm will hold a $130 billion stake in the for-profit entity. Microsoft, however, will no longer have the right of first refusal to serve as OpenAI's cloud provid ...