Artificial intelligence giants love Nvidia (NVDA), Microsoft (MSFT), Metaplatforms (META) and Alphabet (GOOGL) continues to make headlines as Magnificent Seven stock. But Salesforce.com (CRM) clearly demands a spot on any list of AI stocks to watch.
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Salesforce has already landed on the IBD Breakout Stocks Index, alongside Nvidia and Google stocks.
The index is updated weekly on Tuesday after the close. IBD is publishing the components to show who joins CRM stock, Nvidia and Alphabet on the latest list.
Investors can also take a position in all the names on the IBD Breakout Stocks Index with a single trade in Innovator’s IBD Breakout Opportunities ETF (BOUT).
In addition to making the IBD Breakout Stocks Index, here are four reasons why investors should be looking at CRM stocks now.
1. Salesforce Stock Sees Huge Demand Alongside Nvidia
This month’s list of new buys from the top mutual funds once again shows how top money managers continue to invest huge sums in companies driving the AI revolution.
Salesforce grabbed the spotlight, with leading funds raising more than $1.4 billion in CRM stock.
In further demonstration of this AI-driven demand, Nvidia ($12.3 billion), Microsoft ($11.4 billion), Meta (just under $7 billion), and Alphabet ($3.7 billion) also saw impressive capital inflows.
2. CRM Stock joins NVDA, META and MSFT on Elite Screen
The IBD 50 screen shows the top growth stocks to watch. Salesforce stock earns a spot on the list alongside Nvidia, Microsoft and Meta.
While a spot on the IBD 50 is not a purchase recommendation, this flagship screen highlights 50 companies that demonstrate strong relative price strength and top-notch fundamentals.
3. Salesforce Stock Leads on New Buy Point
As Google shares build on their recovery into the buy range and Nvidia falls below the 21-day exponential moving average, Salesforce continues to build on a second phase of a flat base. The buy point is 318.71.
Since launching a major sales decline in late November, Salesforce has continued to rise, holding support above its 10-week moving average.
On February 28, Salesforce reported earnings and sales that beat expectations, but shares fell on slight expectations.
Since then, CRM stock has built its current flat base while holding support above the 50-day line. As a sign of resilience, Salesforce has also maintained the shorter term line of 21 days.
As Salesforce stock approaches another breakout, look for the relative strength line to start moving toward a 52-week high.
Salesforce is currently trading 5% below the new buy point.
4. Salesforce is riding the AI wave with a slew of innovations
Salesforce continues to unveil AI innovations across multiple industries.
On April 4, the company introduced new AI automation and integration capabilities within its MuleSoft platform. The improvements are intended to help business users and developers improve productivity and simplify workflows.
Last month, Salesforce also announced new features for its Service Cloud. Powered by Salesforce’s Einstein 1 platform, the company says the enhancements allow customers to use AI technologies to identify recurring issues and recommend next steps based on customer feedback. Salesforce says the new features can track service calls to suggest ways agents can resolve cases faster.
Salesforce also unveiled a strategic partnership with Iqvia (IQVA), a provider of data analytics and technology for the life sciences industry. The partnership aims to accelerate AI and data capabilities within Salesforce’s Life Sciences Cloud.
In March, Salesforce also announced it was working with Turtle Bay Resort in Hawaii to augment service agents with AI and personalize the entire guest experience. This partnership also uses Salesforce’s Einstein 1 platform.
IBD Breakout Opportunities ETF
Innovator Capital Management’s IBD Breakout Opportunities ETF (BOUT) tracks the IBD Breakout Stocks Index. Like other index ETFs, this fund allows you to invest in the entire index in addition to or instead of buying individual stocks. Read more about the ETF and Innovator here.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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