Is Salesforce (CRM) an Undervalued AI Opportunity Despite Slower Growth?

Is Salesforce (CRM) an Undervalued AI Opportunity Despite Slower Growth? Soumya Eswaran Mon, August 24, 2026 at 3:53 PM GMT+2 3 min read CRM Sustainable Growth Advisers (SGA), an investment management company, released its second-quarter 2026 investor letter for its "Global Growth Strategy. " The letter can be downloaded here .

The SGA Global Growth Portfolio returned 7. 4% gross and 7. 2% net, compared with 14.

9% for the MSCI ACWI and 19. 8% for the MSCI ACWI Growth Index. Momentum leadership and enthusiasm around AI infrastructure drove markets, with semiconductor, memory, and hardware stocks accounting for much of the gain.

Although the portfolio owned AI beneficiaries, broader holdings lagged despite fundamentals, as median revenue and EPS growth reached 12% and 14% and more than 60% of the holdings beat expectations. SGA believes valuation compression reflects sentiment rather than weaker business quality, leaving the portfolio near its widest discount to the market since inception. The firm continues to favor durable compounders and expects 16% revenue growth and 20% earnings growth over three years.

Also, please check the Fund's top five holdings to see its best picks for 2026. In its second-quarter 2026 investor letter, SGA Global Growth Strategy highlighted Salesforce, Inc. (NYSE: CRM ).

Salesforce, Inc. (NYSE:CRM) is a cloud computing company that offers Customer Relationship Management (CRM) technology that brings companies and customers together. On August 21, 2026, Salesforce, Inc.

(NYSE:CRM) closed at $209. 17 per share. The one-month return of Salesforce, Inc.

(NYSE:CRM) is 21. 95%, while its shares lost 14. 59% over the past 52 weeks.

Salesforce, Inc. (NYSE:CRM) has a market capitalization of $171. 31 billion.

SGA Global Growth Strategy stated the following regarding Salesforce, Inc. (NYSE:CRM) in its Q2 2026 investor letter: " Salesforce  was a detractor from performance during the quarter as investor sentiment remained cautious following another quarter that merely met its guidance targets. Current remaining performance obligations (cRPO) growth were in line at roughly 9% rather than the historical pattern of beating by about a point, and the forward quarter guide was modest.

Management acknowledged continued weakness in Marketing, Commerce, and Tableau (roughly 20% of revenue), partially offset by strength in Sales Cloud, Service Cloud, Slack, and Data Cloud (roughly 75% to 80% of revenue), with Sales and Service Cloud each posting seat growth in the quarter. Additionally, Agentforce annualized recurring revenue reached $1. 2 billion, growing 205%.

Management reiterated full-year guidance and a second-half reacceleration based on bookings strength and lower attrition, alongside a long-term double-digit organic growth target through CY29 with about 100 basis points of annual margin expansion. Despite concerns around AI‑driven competition, we believe Salesforce's integration into customer business processes, large installed base, and wide product set position it well to compete effectively in the Agentic AI era, supporting low-teens earnings growth over the next three years. We lowered the position target to a below-average weight.

" Story Continues Salesforce (CRM) Earns Vote of Confidence from Truist after $3. 6 Billion Acquisition Salesforce, Inc.  (NYSE:CRM) is not on our list of the 40 Most Popular Stocks Among Hedge Funds .

As per our database, 101 hedge fund portfolios held Salesforce, Inc.  (NYSE:CRM) at the end of the first quarter which was 115 in the previous quarter.   While we acknowledge the potential of Salesforce, Inc.

 (NYSE:CRM) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the  best short-term AI stock . In another article , we covered Salesforce, Inc.

(NYSE:CRM) and shared Parnassus Core Equity Fund's insights on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years .

Disclosure: None. This article is originally published at Insider Monkey .