A lot of AI growth stocks look fully valued right now. Over the last year, many of these shares have risen significantly.
There are still opportunities in this area of the market, however. Here’s a look at a stock that analysts believe could rise 60%-70% over the next 12 months or so.
An AI stock that’s worth a closer look
The stock in focus today is Salesforce (NYSE: CRM). It’s one of the largest software businesses in the world.
Traditionally, it has specialised in customer relationship management (CRM) software. However, over the last year, it has been focused on developing an agentic AI (digital labour) platform for businesses called Agentforce.
Agentforce momentum
Now, earlier this week, Salesforce posted its earnings for the third quarter of its fiscal 2026 year. And they showed that the company’s AI solutions are really gaining traction with customers.
For the period, Agentforce annualised recurring revenue (ARR) surged 330% year on year to $500m. At the end of the period, the company had 9,500 customers paying for the service, up from 6,000 at the end of Q2.
Note that on the earnings call, CEO Marc Benioff discussed how existing customers are spending more on Agentforce. In Q3, 362 customers “refilled the tank” versus just three customers in Q1.
When combined with Data 360 (Salesforce’s data platform) revenue, ARR was $1.4bn, up 114% year on year. So, this area of the business is certainly growing quickly.
Our Agentforce and Data 360 products are the momentum drivers, hitting nearly $1.4bn in ARR—an explosive 114% year-over-year gain. We now have over 9,500 paid Agentforce deals and 3.2 trillion tokens processed, underscoring our leadership in building the Agentic Enterprise and driving real outcomes.
Salesforce CEO Marc Benioff
Full-year guidance raised
Zooming out and looking at overall results, total revenue for the quarter was $10.3bn, up 9% year on year. Adjusted earnings per share was $3.25, up 35% year on year and well ahead of the consensus forecast of $2.86.
On the back of this performance, the company raised its full-year guidance. It now expects revenue of $41.45bn to $41.55bn (versus previous guidance of $41.1bn to $41.3bn), up 9%-10% year on year.
Analysts see a lot of potential
Since the Q3 earnings, analysts have been adjusting their price targets for Salesforce stock. Currently, many firms have price targets of $400, which is about 60% higher than today’s share price. The highest target is from investment bank Citizens. It believes Salesforce shares can hit $430 – about 70% higher than the current share price.
My view
Of course, analysts’ price targets need to be taken with a grain of salt. Often, they don’t come to fruition.
There are certainly a few risks that could derail the bullish investment thesis. These include disruption to its core business from AI, competition from other agentic AI solutions, and general economic weakness (which could reduce spending on technology).
I’m quite bullish on this AI stock, however. Personally, I believe it’s worth a look at current prices as the price-to-earnings (P/E) ratio is very reasonable at around 19.
That said, it’s not the only opportunity I see in the market at present. Right now, there are quite a few stocks that look attractive to me.
