Benzinga - by The Arora Report, Benzinga Contributor.
To gain an edge, this is what you need to know today.
Dominating Artificial Intelligence Please click here for a chart of Microsoft Corp (NASDAQ: MSFT)).
Note the following:
- The Morning Capsule is about the big picture, not an individual stock. The chart of MSFT stock is being used to illustrate the point. There are two dominant forces driving the stock market this year: market mechanics and artificial intelligence. Microsoft is the leader in artificial intelligence software and services.
- The chart shows MSFT stock fell on Friday. The fall in MSFT was due to the ouster of Sam Altman, the CEO of OpenAI.
- OpenAI is the developer of ChatGPT.
- Microsoft is the biggest investor in OpenAI. Microsoft's AI initiatives are centered around ChatGPT.
- Altman was fired at OpenAI after he lost the board’s confidence. Apparently, there was a culture clash at OpenAI. OpenAI is a not-for-profit organization with a for-profit arm. The clash occurred between those who want to slow and be more deliberate about AI development for public good and those who want to rapidly make money from AI.
- OpenAI has hired Emmett Shear as its new interim CEO. Shear was co-founder and ex-CEO of video game streaming service Twitch. Twitch is now owned by Amazon.com, Inc. (NASDAQ: AMZN). Shear has been in favor of slowing AI development.
- Microsoft tried to get Altman reinstated as CEO of OpenAI but failed. Now, Microsoft has hired Altman. Microsoft has also hired former OpenAI President Greg Brockman.
- In The Arora Report analysis, Microsoft did not appear to have much of a choice. Altman and Brockman could have joined a competitor such as Alphabet Inc Class C (NASDAQ: GOOG). On the surface, it seems to be a good move by Microsoft on its quest to dominate artificial intelligence.
- The chart shows that MSFT stock has moved up on Microsoft hiring Altman and Brockman. This is not good news for Alphabet and Amazon. For those who want to take their investing in artificial intelligence to the next level, there are several podcasts on artificial intelligence in Arora Ambassador Club.
- Last week, Microsoft announced two new semiconductor artificial intelligence chips.
- Before his firing, Altman was reportedly trying to raise billions of dollars from Middle Eastern investors to start a semiconductor company to compete with NVIDIA Corp (NASDAQ: NVDA).
- Nvidia will report earnings after the close tomorrow. These earnings will be closely watched and may determine the next move in the entire stock market.
- A fortune is to be made in artificial intelligence over the next seven years. It is not going to be a straight line. At times, it will be treacherous. You will need expert guidance. There is no better resource than The Arora Report. Please click here to see our carefully selected list of 18 artificial intelligence stocks to watch.
- As an actionable item, the sum total of the foregoing is in the protection band, which strikes the optimum balance between various crosscurrents. Please scroll down to see the protection band.
In the early trade, money flows are negative in Alphabet and Amazon.
In the early trade, money flows are mixed in SPDR S&P 500 ETF Trust (ARCA:SPY) and Invesco QQQ Trust Series 1 (NASDAQ: QQQ).
Momo Crowd And Smart Money In Stocks The momo crowd is buying stocks in the early trade. Smart money is