Looking for a major tech stock that’s been left behind in the AI-fueled rally? Take a look at former Wall Street darling Salesforce (CRM). While the tech-heavy Nasdaq (NDX) has climbed 23.7% over the past year, Salesforce shares have dropped 13%—and now sit roughly 30% below their 52-week high.
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It’s unfamiliar territory for a long-term winner that’s still up more than 200% over the past decade, even after the recent pullback. Much of the current weakness stems from growing fears that AI could make Salesforce’s products obsolete.
That concern, while understandable, overlooks an important fact: Salesforce is integrating AI across its ecosystem—using it to enhance productivity, strengthen its platform, and deliver smarter solutions to customers. This disconnect between perception and reality has created an opportunity. The stock’s underperformance may give investors a chance to buy a proven compounder at a discounted price before it regains momentum.
I remain quietly Bullish on Salesforce, supported by its continued AI progress, attractive valuation, rising dividend, and consistent share buybacks. Wall Street analysts agree—the stock has a Moderate Buy consensus rating, with expectations of over 30% upside over the next 12 months.
Salesforce Turns AI Threat Into Opportunity as Growth Accelerates
Much of the reason Salesforce (CRM) hasn’t joined the AI-fueled rally enjoyed by many of its peers comes down to investor skepticism. Analysts worry that new AI tools could erode Salesforce’s core business. Yet, this concern overlooks the company’s aggressive push to embed AI across its platform to enhance customer experiences and drive growth.
Those efforts are already paying off. In its most recent quarter, annual recurring revenue (ARR) from Salesforce’s Data Cloud and AI segment surged 120% year over year to $1.2 billion. At its Dreamforce conference, the company also revealed that its Agentic AI business has reached $440 million in ARR, with over 12,000 customers already building AI agents using Agentforce, its agentic AI platform.
According to COO & CFO Robin Washington, customers who adopt Agentforce for internal and external use typically generate a 3–4x increase in ARR, suggesting that the early traction seen so far could translate into powerful future growth.
In short, while the prevailing narrative claims that AI might replace Salesforce, the numbers tell a different story—one of a company leveraging AI to strengthen its business.
Looking ahead, Salesforce’s outlook remains ambitious. At Dreamforce, the company set a target of $60 billion in revenue by 2030 (excluding revenue from its recent Informatica (INFA) acquisition), representing an impressive ~10% compound annual growth rate (CAGR). That’s not the posture of a company fearing obsolescence—it’s one positioning itself to thrive in the AI era.
Salesforce’s Valuation Returns to Earth
After the recent pullback, Salesforce (CRM) shares are trading at a much more attractive valuation. The stock now sits at just 22.5x forward earnings estimates—roughly in line with the broader market and below its historical average. Despite appearing reasonably aligned with its valuation metrics, the stock has decoupled from the S&P 500 (SPX) since April and has been trending downward, according to TipRanks data.
At this level, there’s little excess optimism priced into the stock, especially compared to many of its large-cap tech peers. That more grounded valuation provides a solid margin of safety, while leaving ample room for upside as investor sentiment eventually turns back in Salesforce’s favor.
Newly Minted Dividend Stock
Salesforce (CRM) entered the ranks of dividend-paying tech stocks last year with its inaugural payout. The current yield of 0.65% is modest—comparable to the sector average and roughly half the S&P 500’s 1.2%. Still, it’s the pace of CRM’s dividend growth that has impressed shareholders.
Salesforce has already demonstrated a commitment to returning capital to shareholders, raising its quarterly payout from $0.40 per share last year to $0.416 this year. And with a conservative payout ratio of just 15.3%, the company has plenty of room to keep increasing its dividend as earnings expand.
Accelerating Share Repurchases
Salesforce is also rewarding shareholders through an accelerated share repurchase program. At the investor and analyst session during Dreamforce 2025, the company announced plans to significantly ramp up buybacks, guiding investors to expect a “step-up” of roughly 50% in repurchases during the second half of 2026 compared to the first.
Buybacks are generally shareholder-friendly, as they reduce the number of shares outstanding, thereby boosting earnings per share and concentrating ownership among remaining investors. What makes Salesforce’s plan even more compelling is the timing—the company is increasing buybacks while its stock remains attractively valued, amplifying the potential benefit to shareholders.
Is CRM Stock a Buy, According to Analysts?
Turning to Wall Street, CRM earns a Moderate Buy consensus rating based on 30 Buys, nine Holds, and one Sell rating assigned in the past three months. The average CRM stock price target of $330.36 implies ~29% upside potential over the coming 12 months.
Salesforce Plays Catch-Up With AI Hype
Salesforce (CRM) is down more than 30% from its 52-week high, having largely missed out on the AI-fueled rally that has lifted much of the tech sector. Investor concern that AI could disrupt Salesforce’s core business has weighed heavily on the stock.
However, the company’s performance tells a different story. Annual recurring revenue (ARR) from its Data Cloud and AI segment surged, and Agentforce—its agentic AI platform—has already generated $440 million in ARR, signaling that Salesforce is benefiting from AI, not being replaced by it.
I remain bullish on Salesforce given its strong AI-driven growth, reasonable valuation, small but rising dividend, and aggressive share repurchase plans, which are set to accelerate in the second half of 2026.
For investors seeking AI laggards with catch-up potential, Salesforce stands out as a compelling opportunity.