JPMorgan Sees Salesforce as Undervalued Amid AI Optimism

Salesforce's stock price has been on an upswing lately, despite a mixed year for the company. The share price has fallen 22.6% year to date but risen 14.9% over the past 30 days. JPMorgan recently initiated coverage of Salesforce, arguing that the market may be overestimating generative AI risk to the company's core business and AI monetization potential.

The analyst's call comes after a string of recent headlines focused on Agentforce deployments with U.S. defense customers, raised long-term revenue guidance for AI products, and management changes. These developments have helped improve short-term momentum, even as longer-term returns remain under pressure.

JPMorgan's optimism about Salesforce's AI prospects has sparked interest in the stock, but investors still need to watch for faster seat erosion than AI usage growth, as well as any sign that Microsoft Copilot displaces Salesforce inside large customers.