Salesforce's AI Push Makes Cloud, CRM ETFs A Hot Play For Investors

Salesforce Inc (NYSE:CRM) may be down over 25% year-to-date, but its aggressive AI and cloud growth ambitions are attracting revived attention from investors looking for diversified exposure in the form of ETFs.

Its long-term objectives and innovative AI products are putting the spotlight on thematic funds specialized in enterprise software and cloud computing.

• CRM stock is up almost 5% on Thursday. Track its live prices.

ETF Spotlight

Investors may also have access to Salesforce and its competitors through ETFs such as iShares Expanded Tech-Software ETF (BATS:IGV), First Trust Cloud Computing ETF (NASDAQ:SKYY) and Global X Cloud Computing ETF (NASDAQ:CLOU). These are comprised of dominant software and cloud companies, including Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL) and ServiceNow Inc (NYSE:NOW), and thus investors can partake of the AI-fueled enterprise transformation without being exposed to the risk of a single stock’s volatility.

Cloud and CRM-oriented ETFs are more appealing now as they reflect growth from all sides: the adoption of AI in sales and IT service, recurring subscription revenue, and strategic alliances. Salesforce’s merger of Google’s Gemini AI models into its Agentforce 360 platform is the kind of innovation that is powering long-term growth in the industry.

Salesforce’s Long-Term Growth Catalysts

During its Dreamforce Investor Day, Salesforce provided a revenue goal of more than $60 billion by fiscal 2030 and introduced the “50 by fiscal 2030” Profitable Growth Framework, where it targets subscription and support growth and adjusted operating margin to achieve 50% by 2030. Its Data and AI products grew 120% year-over-year to $1.2 billion during Q2, while Agentforce ARR hit $440 million, serving over 12,000 customers. Analysts envision a three- to four-fold ARR boost as customers increase AI usage.

Even in the face of conservative near-term guidance, Salesforce’s AI-based product innovation, accretive acquisitions and collaborations indicate a long-term growth path that ETFs can track. Investors looking for diversified exposure to the enterprise software and cloud revolution have an option in ETFs to ride the wave of AI growth while mitigating stock-specific risks.

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