In a recent analysis, we spotlighted 10 Buzzing Tech and AI Stocks Gaining Attention. Among them, Salesforce Inc (NYSE:CRM) has emerged as a focal point, drawing insights from various market analysts.
Dan Niles, the founder and portfolio manager of Niles Investment Management, expressed his apprehension regarding the minimal returns on investment (ROI) in AI sectors. He referred to recent studies indicating that many businesses are still waiting for substantial outcomes from their AI expenditures. Niles pointed out Salesforce Inc (NYSE:CRM) as a prime example of this trend:
“Last year, Salesforce Inc (NYSE:CRM) was hailed as the leader in Agentic AI solutions, with their stock reaching unprecedented heights. However, by August, their stock hit a 52-week low due to a lag in deployment that fell short of CEO expectations.”
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The Oakmark Fund recently shared their perspective on Salesforce, Inc. (NYSE:CRM) in their second quarter 2025 investor letter:
“Salesforce, Inc. (NYSE:CRM) is a prominent player in the tech space, offering a comprehensive suite of software solutions designed to enhance business productivity. We believe Salesforce is undergoing a transformation into a robust, shareholder-oriented enterprise. Over the past couple of years, since management pledged a stronger commitment to operational efficiency, Salesforce’s profit margins have significantly improved. We see further opportunities for growth as the company capitalizes on its unique position to assist businesses in AI implementation while continuing to refocus its sales strategy. We exited our position in Salesforce in December, yet the stock price has since dropped over 30%, even as it continues to deliver fundamental results aligning with our expectations. We initiated our position by employing a put writing strategy to minimize our entry cost, given that we perceived the options were priced too high, suggesting Salesforce was among the most volatile major firms, contradicting our valuation insights.”
While we acknowledge the potential for CRM as a viable investment, we maintain that certain AI stocks may exhibit higher return potential and reduced risk. For investors seeking undervalued AI stocks that could benefit from regulatory changes and the trend of reshoring, we invite you to explore our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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