Salesforce (CRM): Bullish Outlook Despite Soft Revenue Guidance – Here's Why!

Yahoo

08-03-2025

We recently published a list of . In this article, we are going to take a look at where Salesforce Inc (NYSE:CRM) stands against other AI stocks making big moves today.
What is the biggest security risk in artificial intelligence? According to CPPCC member Zhou Hongyi, co-founder and chairman of internet security firm Qihoo 360, it is to fall behind.
The Chinese People's Political Consultative Conference (CPPCC) is a political advisory body in China and a key component of the Chinese Communist Party (CCP)'s united front system.
Unlike former President Joe Biden's stance on AI, which was supportive but cautious, current AI leaders, including President Donald Trump, and political advisors in Beijing, are against overregulation in the AI industry.
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The Trump administration has since reversed Biden's AI executive order and launched the Stargate project, reflecting on his pro-innovation stance instead. Likewise, Beijing's political advisors have made remarks ahead of the country's annual parliamentary meetings, advising against overregulating artificial intelligence companies amid a growing debate about the emerging technology.
'We should neither exaggerate nor ignore security issues related to AI. Some leading AI companies in the US exaggerate the security issues of AI as an excuse for not having open-sourced products as they seek a monopoly, so the latecomers cannot catch up.'
Zhou cautioned that China must 'correctly understand' the security risks in AI.
'Falling behind in [AI] development is the biggest security risk. We must seize this opportunity of AI to improve productivity and let everyone benefit from the fruits of the inclusiveness of science and technology'.
Zhang Yi, a senior partner at King & Wood Mallesons and CPPCC member, advised that China needs to develop its own AI rules to ensure stable development but at the same time, needs to be aware that 'overly strong legal intervention might become a rope that strangles the development of AI as global competition intensifies'.
In a race towards supremacy in artificial intelligence, Beijing is working hard and has signaled that it will act cautiously on regulation of the sector. According to the Ministry of Science and Technology, legislation on artificial intelligence is going to be rolled out in an 'orderly' way in response to proposals from the CPPCC.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A customer service team in an office setting using the company's Customer 360 platform to communicate with customers.Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained popularity after the launch of its AI-powered platform called Agentforce. On March 3rd, Mizuho Securities analyst Gregg Moskowitz reiterated a 'Buy' rating on the stock and kept the price target at $425.00. The firm is optimistic on the stock based on its strong performance and potential for growth. Salesforce has reported a robust quarter, with cRPO growth demonstrating an impressive 11% increase in constant currency terms.
The early momentum of Salesforce's AI-powered platform Agentforce has also been notable, the firm added. An estimated 5,000 deals have closed since October, contributing to a combined Data Cloud and AI annual recurring revenue of around $900 million. The firm did acknowledge that FY26 revenue guidance fell short of consensus, but believes the market overreacted considering that company fundamentals remain strong. All in all, the firm is bullish on the stock considering Salesforce's strong position in managing its customers' digital transformation efforts and the promising opportunity of Agentforce.
Overall, CRM ranks 6th on our list of AI stocks making big moves today. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM but that trades at less than 5 times its earnings, check out our report about the .
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Disclosure: None. This article is originally published at Insider Monkey.