Salesforce stock was upgraded by analysts who cited the buzz around the tech giant's AI tool, Agentforce.
The new Salesforce platform enables businesses to create and deploy AI tools for a range of tasks like sales, marketing and customer support.
"The positivity around the launch of Agentforce is palpable with customers and with partners," KeyBanc analysts said in a Thursday note, upgrading the stock to overweight from sector weight. The energy around Agentforce is pervading our conversations with Salesforce customers, partners and investors."
Salesforce unveiled Agentforce earlier this year as AI tools, known as agents or copilots, geared toward helping businesses and organizations improve their operations, emerged as a key battleground in AI. The San Francisco-based software behemoth is rolling out Agentforce 2.0 next week.
Salesforce Stock: Battle Over AI Tools
The quick turnaround underlines the intense competition over AI tools.
Microsoft has touted Copilot as it seeks to boost its position in AI. This week, Alphabet unveiled a new version of its Gemini 2.0 AI platform which CEO Sundar Pichai said was aimed at the "agentic era."
Salesforce got some upbeat reviews from KeyBanc.
"We are fans of agents over copliots as an AI medium, have had optimistic conversations with partners and wrote recently that Salesforce is in a sweet spot where Agentforce hype does not yet have to lead to tangible revenue," KeyBanc analysts said.
Shares of Salesforce slipped more than 1% Friday.
After a bumpy ride in June, Salesforce stock has been on a roll, gaining more than 35% year to date. The stock has climbed above its 50-day average, and is poised to reclaim its 21-day.
CRM stock gapped up 11% to a record high on Dec. 4 following earnings, in part on AI optimism. Shares are just below those levels now.
Salesforce stock has a high Relative Strength Rating of 90, up sharply from 25 six months ago.
