Salesforce: Agentforce on Display at Dreamforce

While there was no financial update at Salesforce's Dreamforce artificial intelligence event, the firm made various AI-themed announcements. Among these were a heavy dose of Agentforce; a partnership with Nvidia; an expanded partnership with Google; and a deep dive into the data cloud. We made no update to our model and are maintaining our $290 fair value estimate for shares of wide-moat Salesforce. Share performance has been underwhelming year to date; we think this is partly because investors worry about AI disruption. Given the company’s entrenched position with enterprise customers and its leading technology, we conclude that Salesforce is well positioned for the coming wave of generative AI with data cloud and the evolution of both Einstein Copilot and virtual agents. This is combined with the firm’s presence in customer-related software. Based on what we saw at Dreamforce, we are incrementally confident in that position, and we see the stock as attractive.