Artificial intelligence behemoths such as Nvidia (NVDA), Microsoft (MSFT), Meta Platforms (META), and Alphabet (GOOGL) are consistently in the spotlight as prominent players in the Magnificent Seven stocks. However, Salesforce.com (CRM) undeniably merits inclusion in any compilation of noteworthy AI stocks.
Tech giants like Amazon and Tesla are incorporating humanoid robots into their operational environments. Nevertheless, a discourse comparing the utility of humanoid robots versus task-specific droids is gaining traction.
Amazon, alongside Nvidia and Google stock, has already been enlisted in the IBD Breakthrough Companies Index.
The score is routinely updated on Tuesdays after the market closes. The components added to the most recent listing alongside Nvidia, Alphabet, and CRM stocks are detailed in the publication by IBD.
Investors also have the option to invest in all the entities listed on the IBD Breakout Stocks Index through the Innovator IBD Breakout Opportunities ETF (BOUT).
Here are four compelling reasons why investors should consider Salesforce (CRM) stock at present, in addition to its inclusion in the IBD Breakthrough Companies Index:
1. Strong Demand for Nvidia and Salesforce Stock Persists
Prominent fund managers are continuing to channel substantial investments into companies propelling the AI revolution, as evidenced by the recent acquisitions by leading mutual funds.
Amazon garnered attention with major resources acquiring over $1.4 billion worth of CRM stock.
Underlining this surge in AI-driven demand, Nvidia (\(12.3 billion), Microsoft (\)11.4 billion), Meta (nearly \(7 billion), and Alphabet (\)3.7 billion) also witnessed notable capital inflows.
2. CRM Stock Joins NVDA, META, MSFT On Elite Screen
The IBD 50 roster highlights the top growth stocks to watch, with Salesforce joining Nvidia, Microsoft, and Meta on this prestigious list.
While inclusion in the IBD 50 is not a direct buy signal, this elite screen showcases 50 companies with strong relative price strength and exceptional fundamentals.
3. New Buy Point Emerges for Salesforce Stock
Amazon is consolidating in a second-stage base, Google’s stock is extending its rebound into a buy zone, and Nvidia is retracing below its 21-day exponential moving average. The buy point stands at 318.71.
Since a significant earnings-driven breakout at the end of November, Amazon has been on an upward trajectory, maintaining support above its 10-month moving average.
Following its earnings report on Feb. 28, Salesforce revealed robust profits and revenue figures, albeit with conservative guidance leading to a stock dip.
Subsequently, CRM stock has formed a level base while holding above its 50-day line. Notably, Salesforce has demonstrated resilience by staying close to its short-term 21-day line.
Watch for the relative strength line to approach a 52-week high as Salesforce stock nears a potential breakout, currently trading 5% below the new buy point.
4. Salesforce Capitalizes on AI Advancements
Salesforce is at the forefront of introducing AI innovations across various sectors.
On April 4, the company unveiled new AI automation and integration features for its MuleSoft platform, aimed at boosting productivity and streamlining workflows for business users and developers.
Last month, Salesforce introduced new Service Cloud capabilities powered by the Einstein Platform, enabling clients to leverage AI technologies for issue identification and tailored recommendations based on customer feedback. These enhancements facilitate tracking service interactions and advising agents on expediting conflict resolutions.
Moreover, Salesforce has forged a strategic alliance with Iqvia (IQVA) to enhance the AI and data-centric capabilities of Salesforce’s Life Sciences Cloud.
In March, Salesforce announced a collaboration with Turtle Bay, a Hawaiian resort, to enhance guest experiences and integrate AI into its service operations, leveraging the Salesforce Einstein platform.
IBD Breakout Opportunities ETF
The Innovator Capital Management IBD Breakout Opportunities ETF (BOUT) tracks the IBD Breakout Stocks Index, offering investors the opportunity to invest in the entire index alongside or instead of individual stock purchases, akin to other index ETFs.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
