Salesforce shares edged higher Wednesday after J.P. Morgan analyst Mark Murphy pushed back against concerns that the company is falling behind in the artificial intelligence race. The stock gained ground as investors responded to a note that framed recent AI-driven anxiety as exaggerated.
Murphy, who reiterated an overweight rating on the software maker, raised his price target to $360 from $305. That new target implies roughly 29% upside from the stock’s most recent closing level, according to the note. He argued that several AI features delivered by Salesforce this year are more promising than the market gives them credit for.
The analyst specifically pointed to Agentforce, the company’s suite of AI agents designed to handle customer service tasks autonomously. He said early customer traction and product maturity suggest a stronger near-term opportunity than the current valuation reflects. Murphy also cited momentum in Data Cloud, which connects customer data across systems to power AI applications.
J.P. Morgan’s stance contrasts with broader skepticism across Wall Street about legacy software vendors facing disruption from cheaper, faster AI startups. Some investors have questioned whether Salesforce can monetize AI effectively without cannibalizing core revenue streams. Murphy acknowledged that risk but called it manageable, noting that pricing strategies and product adoption are evolving in the company’s favor.
The analyst also highlighted that Salesforce is expanding partnerships with major cloud providers beyond its traditional ecosystem. That includes deeper integration work with Microsoft Azure and Google Cloud, which could broaden its enterprise reach. He believes these alliances reduce the threat of displacement from hyperscalers offering their own AI services.
Market reaction remained measured, with shares up modestly in midday trading despite the bullish call. The stock has faced pressure this year as part of a wider selloff in software names amid rising AI competition. Still, Murphy’s note offered a counterweight to the prevailing bearish narrative.
Salesforce is scheduled to report quarterly earnings in late May, which could serve as a key test for its AI strategy. Analysts will watch for concrete figures on Agentforce adoption and revenue contribution. Until then, the J.P. Morgan outlook provides a bullish anchor for investors weighing the company’s long-term position in an AI-driven market.
