Salesforce (CRM) is undervalued, trading 16% below fair value while the tech sector is overvalued. It was an early adopter of AI and will strengthen its AI platform with the purchase of Informatica. Salesforce is listed as a top stock for the AI boom and one of the 6 stocks to buy for the long term.

Salesforce, a leader in customer relationship software, has established itself in the market. Profits are up, and the company is expected to continue growing. Morningstar metrics show strong moat rating due to switching costs and network effects. Salesforce is predicted to earn returns above its cost of capital for the next 20 years.

The fair value estimate for Salesforce stock is $325, with growth expected through fiscal 2030. Revenue is predicted to grow by 8%, with a focus on all clouds. CEO Marc Benioff’s leadership and revenue growth are key factors for investors. Risks include competition and integration challenges from acquisitions.

Salesforce bulls see room for growth in a fragmented market and expansion into new areas. Management aims to improve margins. Bears worry about future growth challenges, integration risks from acquisitions, and AI strategy uncertainties. Salesforce’s AI platform has seen mixed success.

Read more at Morningstar: An Undervalued Stock to Buy That’s Quietly Winning the AI Race