We recently published a list of Weekend Roundup: Top 10 AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks on latest news and ratings.
Elon Musk has recently been in the news for his vain attempt to buy the nonprofit that controls OpenAI, but that’s not all. It has recently come to light that Musk’s artificial intelligence company, xAI, is canvassing potential investors for a roughly $10 billion funding round. This could value the company at an estimated $75 billion.
According to media reports, existing investors, including Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners, are in discussions to participate in the transaction. However, the terms of the round aren’t finalized yet and may change.
READ ALSO: 10 AI Stocks Analysts Are Watching: Latest Ratings and News and Top 14 AI Stocks on Wall Street: News and Analyst Ratings
According to data compiled by PitchBook, xAI was last valued at $51 billion. The startup was launched by Musk in 2023, a rival to OpenAI. xAI has recently revealed that Grok3, its AI chatbot, is in the final stages of development and will be released in a week or two.
“Grok 3 has very powerful reasoning capabilities, so in the tests that we’ve done thus far, Grok 3 is outperforming anything that’s been released, that we’re aware of, so that’s a good sign”.
-Elon Musk
With the competition in the AI world heating up fast, OpenAI CEO Sam Altman has recently revealed its plans around GPT-5, and how the company is going to work on simplifying its offerings. He stated that he realizes how the company’s models and product offerings are getting complicated, bringing a solution for user ease.
“We hate the model picker as much as you do and want to return to magic unified intelligence”.
-Sam Altman.
Currently, users are required to manually select various AI models for different tasks. According to Altman, GPT-4.5, internally known as Orion, will be the company’s final “non-chain-of-thought model.” After its release, the company will unify o-series and GPT-series models.
It will do so by offering a system that can use all of its features and determine when to take more or less time to think. The GPT-5 model will be launched as a comprehensive AI system that will incorporate o3 along with other technologies.
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.
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).
A customer service team in an office setting using the company’s Customer 360 platform to communicate with customers.
Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 116
Salesforce Inc (NYSE:CRM) is a cloud-based CRM company that has gained traction after the launch of its AI-powered platform called Agentforce. On February 12, Mizuho Securities analyst Gregg Moskowitz maintained a “Buy” rating on the stock with a price target of $425.
Salesforce has garnered significant attention in the AI world following its release of Agentforce. The platform allows businesses to develop powerful, customizable AI agents that can autonomously handle customer interactions across various channels nonstop. Other analyst firms, such as Piper Sandler, are also bullish on the stock particularly due to Agentforce. Last month, the firm contended that even though Agentforce has garnered significant customer engagement, it is not likely to materialize in revenues until fiscal year 2027. However, it is still confident about the competitive advantage that the AI-powered platform brings to the company.
“Early But Promising Feedback on Agentforce. We hosted investor meetings with Alexandra Chan and Valmik Desai in Europe last week which reinforced prior commentary that 1) the demand environment remains measured, 2) Agentforce has reinvigorated customer engagement but not likely a material revenue driver until F2027E (CY26E), 3) investor fears that Agentforce investments could pressure margins appear overstated and unlikely, 4) internal confidence in agent potential is building with clear competitive differentiation on time-to-value (days vs. weeks), and 5) indirect AI monetization via multi-cloud cross-sell and premium editions could be underappreciated”.
-Piper Sandler
Overall, CRM ranks 5th on our list of AI stocks on latest news and ratings. 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 cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
