8) Salesforce, Inc. (NYSE:CRM)
Average Upside Potential: 25.2%
Number of Hedge Fund Holders: 116
Salesforce, Inc. (NYSE:CRM) is engaged in providing customer relationship management (CRM) technology, bringing companies and customers together. Agentforce demonstrates a significant opportunity for the company to capitalize on the elevated demand for AI-powered customer support solutions. Notably, the platform’s integration of generative AI agents into business workflows places Salesforce, Inc. (NYSE:CRM) in a strong position in this rapidly evolving market.
Moreover, the successful deployment of Agentforce is expected to strengthen its competitive position against rivals like Microsoft, supporting retaining current customers and attracting new ones seeking advanced and dynamic AI capabilities integrated into their CRM systems. Salesforce, Inc. (NYSE:CRM)’s growth is expected to be driven by an expansive product suite, together with seamless integrations and an innovative approach to enterprise solutions. Furthermore, its strategic acquisitions have strengthened its market position. The acquisition of Slack significantly aided Salesforce, Inc. (NYSE:CRM)’s collaboration capabilities, making the company an all-encompassing enterprise software provider.
Also, the acquisition of Own Company in 2024 strengthened Salesforce, Inc. (NYSE:CRM)’s data protection and AI capabilities. This move remains at par with the market trends revolving around growing enterprise priorities associated with security and automation. Montaka Global Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“There are multiple structural trends in the enterprise software space, including (i) the ongoing cloud migrations and digital transformations of enterprises, and (ii) the infusion of AI into software applications.
While the former remains in its early innings (80-85% of enterprise workloads still reside ‘on-premise’ – many of which will ultimately move to public clouds), the latter remains in its infancy.
Given all the hype of late, it’s hard to fathom that large-scale deployments of AI-based enterprise applications have barely even started. It’s all still to come. And we believe 2025 will be the first year that we really start to see meaningful deployments and adoption of these kinds of applications.
Consider another of our top 10 holdings, Salesforce, for example. Its revenue growth is at a cyclical low. Indeed, at just +8% per annum, as reported in the company’s most recent quarter, its rate of revenue growth has never been lower.
But in 2025, not only will price increases that were announced two years ago boost Salesforce, Inc.’s (NYSE:CRM) revenue growth, but the year will also mark the early stages of adoption of the company’s new ‘Agentforce’ (released only weeks ago). This is a new platform that lets businesses build and deploy their own custom AI agents to automate tasks, improve efficiency, and enhance customer experiences…” (Click here to read the full text)
