Salesforce (CRM) Stock Gains as Wall Street Rethinks AI Risks

TLDR

• Salesforce stock gained 3.49%, outperforming the broader Software & IT Services sector.
• Bank of America upgraded Salesforce directly to Buy, raising its price target from $160 to $285.
• Agentforce annual recurring revenue exceeded $1.5 billion, increasing more than 240% year over year.
• Salesforce reported $33.5 billion in current remaining performance obligations, up 14% annually.
• Investors continue assessing whether Salesforce can convert rising AI adoption into stronger revenue growth.

Salesforce (CRM) stock rose 3.49% on Tuesday, October 13, outperforming a 0.65% advance in the Software & IT Services sector. The move followed Bank of America’s rating reversal as investors reconsidered enterprise software. Investors debated whether AI could replace established business platforms.

Salesforce, Inc., CRM

Bank of America Reverses Its Rating

Bank of America analyst Tal Liani raised Salesforce from Underperform directly to Buy on October 12. He raised his price target from $160 to $285, citing corporate technology leaders. They suggested customers would retain systems managing records, workflows and compliance.

Liani previously warned AI tools could weaken demand for traditional software. His revised view sees agents working within existing platforms instead of replacing them. Slower adoption remains a risk because AI revenue is relatively small.

Elsewhere, Microsoft’s custom AI chip program shows how technology companies are pursuing AI strategies. Microsoft plans deployments in 2027, while Salesforce focuses on software and automated workflows. Both approaches depend on sustained corporate spending.

Salesforce Stock Supported by AI Growth

Salesforce’s August results showed Agentforce annual recurring revenue above $1.5 billion, up more than 240% from a year earlier. Agentforce and Data 360 together approached $3.9 billion. The figures measure annualized contract revenue rather than quarterly sales.

The company reported $11.3 billion in second-quarter fiscal 2027 revenue, up 11% year over year. Current remaining performance obligations reached $33.5 billion, an annual increase of 14%. Salesforce agreed to buy AI analytics firm Loops to expand its offerings.

Investors examined the concentration of AI-linked market gains. An October 11 analysis found that 42 AI stocks accounted for 67% of S&P 500 price gains since January 2024. The findings draw attention to revenue expectations across technology companies.

Technology Peers Face Spending Questions

Tuesday’s advance came alongside gains among other technology companies. Meta rose 2.56%, Microsoft added 1.25%, and Alphabet Class A shares advanced 0.16%. Their differing moves reflected varied trading conditions across the sector.

In related developments, Meta’s upcoming earnings report on October 21 will offer another look at corporate AI spending. The company previously guided for third-quarter revenue between $61 billion and $64 billion. Software businesses face similar questions about growth and costs.

For Salesforce, the next test concerns whether growing Agentforce adoption can sustain higher subscription revenue. The company forecasts full-year fiscal 2027 revenue between $46.1 billion and $46.4 billion.

The post Salesforce (CRM) Stock Gains as Wall Street Rethinks AI Risks appeared first on Blockonomi.