Salesforce has recently been upgraded to 'Outperform' by Northland Capital Markets following the launch of its new AI-driven platform, Agentforce, which leverages Agentic AI technology.

Agentforce is designed to enhance worker productivity and create new business opportunities, showcasing Salesforce's commitment to integrating advanced AI solutions.

Northland Capital Markets believes that Agentforce has not only caught up with but may have surpassed Microsoft in AI technology development, indicating a competitive edge in the market.

The firm also highlights that the Customer Relationship Management (CRM) sector is well-positioned to benefit from the significant expansion of the total addressable market (TAM) driven by generative AI technology.

This innovation is projected to increase Salesforce's software TAM from $0.8 trillion to $3.2 trillion, representing a four-fold growth opportunity.

Salesforce aims to leverage AI solutions to boost automation and efficiency in organizations, positioning itself for significant growth in the coming years.

Agentforce allows for the deployment of generative AI agents across various business workflows, including sales, service, marketing, and commerce.

Unlike traditional chatbots, these agents operate within defined processes, improving context and precision in task execution.

Analysts from Wedbush report that Salesforce's new AI offerings are gaining traction with customers, reflecting a positive reception in the market.

However, the competitive landscape remains intense, with rivals like Oracle and ServiceNow also advancing their AI agent capabilities.

In light of these developments, Northland Capital Markets has raised its 12-month price target for Salesforce stock from $270 to $400, reflecting increased confidence in the company's future.

Ives predicts that monetizing AI within Salesforce's extensive CRM base could boost the company's revenue by over $4 billion annually by next year.