We recently published a list of Wall Street Analysts Can’t Stop Talking About These 10 AI Stocks. In this article, we are going to take a look at where Salesforce Inc (NYSE:CRM) stands against other stocks Wall Street analysts can’t stop talking about.
Henry Ajder, Latent Space Advisory founder, said in a latest program on CNBC that lack of fresh data remains a key challenge for the performance of AI systems after a period of “huge” developments and fast learning.
“I think data is the real problem here. We have a finite amount of data available on the internet and a limited number of sources for live, fresh data. I believe this is becoming an increasingly significant challenge, especially as legal issues surrounding how companies obtain and use data are becoming more prominent,” the analyst said.
Ajder believes there won’t be a complete “halt” to the progress in AI systems but in 2025 we are expected to see a slowdown. Answering a question about the AI’s ability to make up data, called synthetic data” to train itself, the analyst said this domain has shown promise but there are risks of synthetic data potentially corrupting the training models.
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For this article we picked 10 AI stocks currently trending based on latest news. With each stock we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Salesforce Inc (NYSE:CRM)
Number of Hedge Fund Investors: 116
Salesforce Inc (NYSE:CRM) has been upgraded to “Overweight” from “Sector Weight” by KeyBanc. They believe Salesforce’s new AI tool, Agentforce, is a big deal for business software.
KeyBanc analysts are enthusiastic about Agentforce’s potential. They stated, “The energy around Agentforce is pervading our conversations with Salesforce customers, partners, and investors. We are fans of this agentic wave in artificial intelligence compared to its copilot predecessor and believe there is real potential for Agentforce to pull activity across Salesforce Inc (NYSE:CRM) Clouds into its demand orbit.”
KeyBanc has set a $440 price target for Salesforce stock.
Polen Focus Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q3 2024 investor letter:
“In the third quarter, we purchased new positions in Apple and Oracle and eliminated our small positions in Nike and Salesforce, Inc. (NYSE:CRM). We exited our position in Salesforce to fund better opportunities in Shopify and MSCI. Salesforce is seeing slower revenue growth than we would have expected, given the weakening macroeconomic environment. Furthermore, since its core end markets in customer relationship management (“CRM”) and Service are fairly mature, a lower growth level versus our expectations could persist for some time.”
Overall, CRM ranks 8th on our list of stocks Wall Street analysts can’t stop talking about. While we acknowledge the potential of CRM, our conviction lies in the belief that under the radar 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 cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
