Salesforce: Ken Fisher's AI-Driven Tech Play with Huge Upside
14min read Investors, listen up! When billionaire ken Fisher—known for his contrarian picks—adds a stock to his top 10, you’d better take notice. Salesforce (CRM) isn’t just on his radar; it’s one of his largest tech bets for 2025. But why? Let’s dive into the numbers and the strategy behind this pick—and why now could be the time to jump in.
The AI Revolution Driving Salesforce’s Growth
Salesforce isn’t resting on its CRM laurels. The company is doubling down on AI, and it’s paying off. Enter Agentforce 2dx, their new platform that’s not just another chatbot—it’s a game-changer. This version lets AI agents work autonomously behind the scenes, handling workflows, data analysis, and decision-making. The result? A 120% year-over-year surge in AI-driven recurring revenue, hitting $900 million annually.
This isn’t just tech for tech’s sake. Clients are buying it. Salesforce’s customer retention rate? A staggering 93%—proof that once you’re in, you’re in for the long haul.
The Financials: Cash Flow King Amid Slowing Growth
Salesforce’s top-line growth has cooled a bit—9% revenue growth in fiscal 2025—but the real story is its cash flow. Operating cash flow jumped 28% to $13.1 billion, a sign the company is tightening its belt where it counts. Even with a 18% year-to-date dip in its stock price (due to cautious 2026 guidance and macro jitters), the fundamentals are solid.
Compare this to Fisher’s other picks: CRM’s $4.16 billion stake in his portfolio is no accident. He’s betting on the company’s ability to weather the storm while AI adoption accelerates.
The Institutional Stamp of Approval
Hedge funds are piling in. 162 funds now hold Salesforce stock, up from 116 just a quarter ago. Fisher isn’t alone in seeing value here. And while pure-play AI stocks (think NVIDIA (NVDA) or Palantir (PLTR)) might offer faster pops, Salesforce’s scale and recurring revenue model make it a core holding for the long game.
Risks? Yes. But the Upside Outweighs Them
- Valuation: At a 24x forward P/E, Salesforce isn’t cheap. But this aligns with its growth trajectory—and it’s far cheaper than Adobe (ADBE) at 38x.
- Competition: SAP and Workday are sharpening their AI tools. But Salesforce’s early lead and client loyalty give it a moat.
- Economic Sensitivity: Enterprise software spending could slow in a recession. But subscriptions mean revenue keeps flowing, even in a downturn.
Conclusion: Buy the Dip, Build for the Future
Ken Fisher’s call isn’t about short-term gains—it’s about owning a $150 billion addressable market leader in AI-driven enterprise software. With AI revenue growing at 120% annually, $13.1 billion in cash flow, and a 93% retention rate, Salesforce is positioned to dominate as businesses worldwide digitize.
The $4.16 billion stake in Fisher’s portfolio isn’t a guess—it’s a bet on CRM’s ability to turn AI into profit. Even with the recent dip, this is a stock to buy and hold.
Action Item: If you’re building a tech portfolio for 2025 and beyond, Salesforce isn’t just a pick—it’s a must. The AI train is leaving the station, and CRM’s seat is first class.
Data as of Q4 2024 filings. Past performance ≠ future results.
