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Morgan Stanley Reduces PT on Salesforce (CRM) Stock

Salesforce, Inc. (NYSE:CRM) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 9, Morgan Stanley reduced the price target on the company’s stock to $398 from $405 while keeping an “Overweight” rating, as reported by The Fly. This comes after the firm adjusted estimates and valuations among its software coverage following Salesforce, Inc. (NYSE:CRM)’s strong earnings report.

Elsewhere, on December 3, Salesforce, Inc. (NYSE:CRM) announced its Q3 2025 revenue of $10.3 billion, reflecting a rise of 9% YoY and 8% in constant currency, amidst growth in subscription and support revenues. Notably, subscription and support revenues for 3 and 9 months ended October 31, 2025 rose mainly because of volume-driven increases from new business that consists of new customers, upgrades, and additional subscriptions from existing customers.

Salesforce, Inc. (NYSE:CRM)’s net income came in at $2,086 million in Q3 FY 2025, an increase from $1,527 million in Q3 FY 2024. Notably, the company’s Agentforce and Data 360 products were the momentum drivers. The company raised its FY 2026 revenue guidance to $41.45 billion – $41.55 billion, and Q3 cRPO was strong, up by 11% YoY and reaching $29.4 billion, hinting at a robust pipeline of future revenue.

Salesforce, Inc. (NYSE:CRM) offers customer relationship management technology, which connects companies and customers.

While we acknowledge the potential of CRM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

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

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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?

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  • 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.

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