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Government Contracts Powering Salesforce (CRM) Bullish Thesis

Salesforce, Inc. (NYSE:CRM) is one of the most promising cloud stocks according to analysts. Salesforce, Inc. (NYSE:CRM) and the US Army reached an agreement on January 26, which will enable the company to improve the Pentagon’s data analytics capabilities and deploy AI agents. It is an indefinite-delivery, indefinite-quantity (IDIQ) contract worth up to $5.6 billion, with a 5-year optional extension period. In a press release, the company said the following about the deal:

”Through the new contract, the Army and the DOW can leverage Salesforce’s trusted data fabric and compliant cloud technologies as the foundation for its agentic enterprise and accelerate decision-making, optimize operations, and improve support for millions of warfighters, civilian personnel, industrial base partners, and dependents.”

On January 20, Deutsche Bank analyst Brad Zelnick lowered the firm’s price target for Salesforce, Inc. (NYSE:CRM) stock from $360 to $325 while maintaining a Buy rating. The revised price target still offers a further 43% upside from the current levels. This upside is consistent with the median Wall Street analysts’ upside estimate of 51% based on 58 analysts covering the stock.

Salesforce, Inc. (NYSE:CRM) operates as a provider of customer relationship management technology. The company’s technology connects global customers and companies. It offers Agentforce, Salesforce Starter, Slack, Tableau, Industries AI, and integration and analytics solutions. The company was founded in 1999 and is based in San Francisco, California.

While we acknowledge the risk and potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT:  Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy and 30 Most Fantastic Stocks Every Investor Should Pay Attention To.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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