Is Salesforce (CRM) an Undervalued AI Opportunity Despite Slower Growth?

Salesforce, Inc. (NYSE:CRM) is a cloud computing company known for its Customer Relationship Management (CRM) technology, which aims to connect companies and customers. As of August 21, 2026, the stock closed at $209.17 per share, with a 21.95% return over the past month and a 14.59% decline over the last 52 weeks. The company's market capitalization stands at $171.31 billion.

In its Q2 2026 investor letter, SGA Global Growth Strategy discussed Salesforce's performance, noting that the stock was a detractor during the quarter due to investor caution following guidance targets that were merely met. While the company's Marketing, Commerce, and Tableau divisions experienced weakness, strong results were seen in Sales Cloud, Service Cloud, Slack, and Data Cloud, which collectively accounted for roughly 75% to 80% of revenue.

Sales and Service Cloud both reported seat growth, and Agentforce's annualized recurring revenue reached $1.2 billion, growing by 205%.

SGA maintains a below-average weight for Salesforce, citing concerns about AI-driven competition and believing that other AI stocks offer greater upside potential with lower downside risk. The firm expects Salesforce to achieve 16% revenue growth and 20% earnings growth over three years, with a long-term double-digit organic growth target through CY29 and about 100 basis points of annual margin expansion.

Despite these expectations, the company is not among the top 40 most popular stocks among hedge funds, which held Salesforce at the end of the first quarter at 115, down from 101 in the previous quarter.