Salesforce stock is seeing a significant boost on Tuesday after Bank of America and Needham named it a top stock pick for the year. The positive outlook stems from the company's strong performance in its AI-powered customer service platform, Agentforce. Salesforce's stock is also contributing to the Dow Jones Industrial Average's recovery from morning losses.
Salesforce stock is surging on Tuesday after two prominent Wall Street firms, Bank of America and Needham , added the customer relationship management software giant to their top stock picks for the year. This positive news comes amidst a broader market recovery, as the Dow Jones Industrial Average rebounded from morning losses to gain about half a percentage point by the late afternoon. Salesforce 's stock price climbing over 2% significantly contributed to the Dow's performance.
Both Bank of America and Needham remain optimistic about Salesforce's prospects, despite a challenging year for the technology sector. Concerns about the incoming administration's tariffs and the Federal Reserve's stance on interest rates have weighed on tech stocks. However, both firms believe Salesforce is well-positioned to outperform its peers. Needham analysts set a $400 price target for Salesforce, roughly $75 above its current share price, citing CEO Marc Benioff's focus on artificial intelligence. Salesforce's Agentforce product, launched in the latter half of 2024, allows businesses to customize AI-powered bots that can handle customer inquiries and resolve issues much like a human representative. Needham's bullish thesis hinges on Salesforce's ability to successfully execute and monetize its Agentforce strategy. The company secured 200 paid deals for Agentforce in the third quarter and expects to reach 1,000 by the end of the year. During the third-quarter earnings call, Benioff revealed that Salesforce itself is utilizing Agentforce to address 83% of customer inquiries. Bank of America also sees opportunities for software companies that can capitalize on the growing demand for AI products. While the US software sector has seen strong gains in recent years, Bank of America analysts believe that the full potential of Agentic AI, which is transforming enterprise IT spending and accelerating cloud migration, remains to be priced in. They warn that some Agentic AI players could displace workers as early as the second half of 2025
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