Shares of Salesforce (CRM 0.29%) rose on Wednesday after an investment bank upgraded its rating on the beleaguered tech stock.
Image source: The Motley Fool.
AI fears are overblown
Like many software stocks, Salesforce's shares have come under pressure as investors have grown increasingly concerned about the threat posed by AI to traditional software-as-a-service (SaaS) business models.
Prior to today's gains, Salesforce's stock price was down 43% from its 52-week high back in July 2025.
NYSE: CRM
Key Data Points
Guggenheim analyst John DiFucci believes the steep drop was an overreaction.
DiFucci acknowledges the risks presented by AI and even concedes that the expected boom in AI agents could weigh on Salesforce's growth. Yet he does not think that it will lead to "Armageddon" for the software leader.
In turn, he argues that Salesforce's current stock price does accurately reflect the company's current and future prospects in an AI-driven world.
All told, DiFucci placed a $228 price target on Salesforce's shares and upgraded the stock from neutral to buy. His new price forecast represents potential gains for investors of roughly 38% from the stock's current price near $165.
Acquisitions are helping Salesforce adapt
Salesforce's acquisitive strategy should enable it to integrate more AI offerings into its services. It struck a deal to purchase agentic AI-powered customer support provider Fin for $3.6 billion in June. The deal is expected to bolster Salesforce's Agentforce autonomous AI agent platform.
