- CRM
- SNOW
This article first appeared on GuruFocus.
Salesforce (NYSE:CRM), the customer-management and enterprise-software powerhouse, <a href="https://www.reuters.com/business/snowflake-shares-surge-ai-demand-powers-growth-lifts-outlook-2026-09-03/?utm_source=chatgpt.com” rel=”nofollow noopener” target=”_blank”>climbed to $264 on Thursday as Snowflake’s stronger outlook reignited the software trade. Reuters reported that the cloud-data company’s quarterly product revenue surged 37%, with artificial intelligence driving roughly half of its recent growth acceleration. That is fresh ammunition for Salesforce bulls: enterprise AI demand is turning into real spending.
Salesforce is already building its own AI machine. Its second-quarter results showed revenue jumping 11% to $11.3 billion, while current remaining performance obligations climbed 14% to $33.5 billion. Agentforce and Data 360 annual recurring revenue closed in on $3.9 billion, including more than $1.5 billion from Agentforce. The products are gaining traction. Now they must move the entire growth needle.
The valuation gap is hard to ignore. At $264.005, Salesforce trades 22.13% below its $339.05 GF Value. Its combined AI-and-data run rate already equals roughly 8.6% of annualized quarterly revenue, but Snowflake’s breakout cannot prove Salesforce will capture the same budgets. The sector signal is flashing green. Renewals, consumption and margins must finish the job.
