5 Most Promising AI Stocks

Page 1 of 5

In this article, we will take a look at the 5 most promising AI stocks. To see more such companies, go directly to 10 Most Promising AI Stocks.

5. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117

Salesforce, Inc. (NYSE:CRM) offers various AI features in its Cloud platforms. Salesforce, Inc. (NYSE:CRM) recently launched Einstein GPT, which it says is the world’s first generative AI CRM technology.

As of the end of the fourth quarter of 2022, 117 hedge funds had stakes in Salesforce, Inc. (NYSE:CRM). The biggest hedge fund stakeholder of Salesforce, Inc. (NYSE:CRM) is Harris Associates which owns an over $1 billion stake in the company.

OpenAI recently rolled out support for Salesforce, Inc. (NYSE:CRM)’s Slack.

Polen Focus Growth Strategy made the following comment about Salesforce, Inc. (NYSE:CRM) in its Q1 2023 investor letter:

Salesforce, Inc. (NYSE:CRM) shares increased over 50% in the quarter, despite the slowing macroeconomy, putting some pressure on the company’s revenue growth in the short term. We believe the strong share price performance was due to resilient revenue growth, despite the tough selling environment in recent quarters, and management’s actions to improve governance structures and streamline operations, including reducing headcount and overall operating expenses as a percentage of sales on a go-forward basis.

While we have long admired Salesforce’s market leading enterprise software across several cloud offerings, we have also believed that the company’s cost structure was bloated. We applaud management’s decision to become a more streamlined and profitable business without sacrificing product development efforts, especially as we also continue to expect healthy revenue growth over the coming five years. The investment case for companies that have solid revenue growth along with disciplined expense management and strong capital allocation can often be, in our experience, a strong combination. And, if it also happens to include accelerating revenue growth and a highly attractive valuation, it can provide for unusually strong shareholder returns. We believe Amazon (see later below) and other companies in the Portfolio are similarly positioned.”

Page 1 of 5