Salesforce's AI Bet Tempts Wall Street Despite Analyst Caution

Salesforce's recent push into artificial intelligence (AI) and automation has investors both excited and cautious. Despite analyst warnings, Wall Street remains optimistic about the company's prospects.

The CRM giant has just completed its acquisition of workflow-analytics startup Fin, a move that reinforces its strategy to integrate AI-driven automation across its cloud platform. Analysts are waiting for detailed updates on Claudeforce, Agentforce, and Data 360 at the upcoming Dreamforce conference in mid-September.

RBC's Rishi Jaluria expects Salesforce to present long-term financial targets tied to AI, including how these tools can support higher revenue growth and its Rule of 50 ambitions. He sees room for margin expansion and deeper penetration of its existing CRM base but flags concerns over the firm's heavy reliance on large acquisitions.

Even with reservations from some analysts, Salesforce stock carries a Moderate Buy consensus, backed by 28 Buys, 10 Holds, and one Sell in the past three months. The average price target of $269.14 points to roughly 9-11% upside from current levels.