Salesforce Inc. shares surged 28.14% in July after being selected by AI models, bringing year-to-date gains to a level that still leaves room for further upside, according to valuation models.
The San Francisco-based software company reported $11.1 billion in revenue for the first quarter of fiscal 2027, a 13% increase from the prior-year period, and exceeded analyst profit expectations by nearly 24%. Wall Street fair-value models estimate the stock at $310.64 per share, implying an additional 48.5% potential gain from current levels. Alternative models cited by analysts suggest a target near $245 per share, representing approximately 55% upside.
The company’s recent performance has been supported by a $25 billion share buyback program and a series of high-value public sector contracts. These include a $1.6 billion agreement with the U.S. Department of Veterans Affairs and a $13.5 billion fleet vehicle deal with the Air Force. Salesforce also holds a $5 billion stake in AI startup Anthropic and has deployed its Agentforce platform to 9.2 million service members, veterans, and military families. The platform has generated over $1 billion in recurring revenue.
Despite these gains, Salesforce shares remain near 52-week lows, trading at roughly 57% of their peak. The company’s recent rally follows broader strength in AI-linked equities, with the S&P 500 up 33.21 points, or 0.43%, to 7,674.37 in late August. The index remains 1.6% below its mid-August high, though the ProPicks AI strategy has outperformed the benchmark by 110.86% since November 2023.
AI-driven stock selection tools have highlighted Salesforce as a top performer in recent weeks, contributing to its July surge. The company’s valuation remains a focal point for investors amid ongoing shifts in enterprise software demand tied to artificial intelligence adoption.
