Artificial intelligence giants like Nvidia, Microsoft, Meta Platforms and Alphabet continue to grab headlines as Magnificent Seven stocks. But Salesforce.com clearly demands a spot on any list of AI stocks to watch.
Salesforce has already landed on the IBD Breakout Stocks Index, alongside Nvidia and Google stock.
The index gets updated weekly on Tuesdays after the close. IBD publishes the components to show who joins CRM stock, Nvidia and Alphabet on the latest list.
Investors can also take a position in all the names on the IBD Breakout Stocks Index with a single trade in the IBD Breakout Opportunities ETF from Innovator.
In addition to making the IBD Breakout Stocks Index, here are four reasons investors should take a look at CRM stock right now.
1. Salesforce Stock Sees Huge Demand Alongside Nvidia
This month's list of new buys by the best mutual funds once again shows how top money managers continue to invest huge sums in companies driving the AI revolution.
Salesforce made the screen, with leading funds scooping up over $1.4 billion worth of CRM stock.
Further showcasing this AI-driven demand, Nvidia ($12.3 billion), Microsoft ($11.4 billion), Meta (just under $7 billion) and Alphabet ($3.7 billion) also saw impressive capital inflows.
2. CRM Stock Joins NVDA, META, MSFT On Elite Screen
The IBD 50 screen showcases the top growth stocks to watch. Salesforce stock earns a spot on the list alongside Nvidia, Microsoft and Meta. Google stock has also made its way onto this elite screen.
While a spot on the IBD 50 is not a recommendation to buy, this flagship screen highlights 50 companies showing strong relative price strength and top-notch fundamentals.
3. Salesforce Stock Primes New Buy Point
As Google stock builds on its rebound into buy range and Nvidia gets featured as the IBD Stock Of The Day, Salesforce continues work on a second-stage flat base. The buy point is 318.71.
Since launching a heavy-volume breakout on earnings at the end of November, Salesforce has kept climbing and holding support above its 10-week moving average.
On Feb. 28, Salesforce reported earnings and sales that topped estimates, but shares fell on light guidance.
Since then, CRM stock has built its current flat base while testing, holding support above its 50-day line.
As Salesforce stock closes in on a fresh breakout, look for the relative strength line to start trending toward a 52-week high.
Salesforce currently closed Wednesday's session 6% shy of the new buy point.
4. Salesforce Rides AI Wave With Slew Of Innovations
Salesforce continues to unveil AI innovations across multiple industries.
On April 4, the company introduced new AI automation and integration capabilities within its MuleSoft platform. The enhancements aim to help business users and developers improve productivity and simplify workflows.
Last month, Salesforce also announced new features for its Service Cloud. Powered by Salesforce's Einstein 1 Platform, the company says the enhancements enable clients to use AI technologies to identify recurring issues and recommend next steps based on customer feedback. Salesforce says the new features can monitor service conversations to suggest ways agents can resolve cases faster.
Salesforce has also unveiled a strategic partnership with Iqvia, a provider of data analytics and technology to the life sciences industry. The partnership aims to accelerate AI and data capabilities within Salesforce's Life Sciences Cloud.
In March, Salesforce also announced it is working with the Turtle Bay Resort in Hawaii to augment service agents with AI and personalize the entire guest experience. This partnership also taps into Salesforce's Einstein 1 platform.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
