This Tech Stock Could Dominate the Market for Agentic AI. Here's Why.

AI Software Industry Trends - 2025 is shaping up to be the year of AI software, with a shift from semiconductor stocks like Nvidia to software companies capitalizing on the AI boom [1] - Agentic AI is rapidly becoming a buzzword, with autonomous agents being one of the most immediate applications of generative AI beyond chatbots [1] - The broader software space is expected to benefit from AI, with use cases exploding [1] Salesforce's Agentic AI Leadership - Salesforce is poised to be a leader in agentic AI with its product Agentforce, leveraging its long history in CRM software [2][3] - Agentforce allows users to build and customize autonomous AI agents that can serve employees and customers 24/7, resolving 83% of visitor requests on Salesforce's help site [4] - Salesforce's deep customer relationships and 25-year history give it an edge in the agentic AI market [5] Impact of Agentforce on Salesforce - Agentforce has significantly expanded Salesforce's total addressable market (TAM), creating a new market that is much larger than the data management market [5] - Salesforce has already signed 200 deals with Agentforce, with the pipeline described as "incredible" [5] - Agentforce has the potential to deliver high-margin profits due to its scalability and low marginal cost [8] Revenue and Growth Outlook - Salesforce's revenue growth rate has slowed to 8 3% in the third quarter, with no immediate evidence of Agentforce impacting growth [6] - The company forecasts 7% to 9% revenue growth for the fourth quarter and 9% growth in remaining performance obligations (RPO) [6] - It may take a few more quarters for Agentforce and agentic AI to begin impacting Salesforce's growth [7] Potential of AI Software - AI software like Agentforce has the potential to greatly scale productivity, decoupling it from workforce growth [5] - Cloud infrastructure companies have invested tens of billions in Nvidia components to build AI infrastructure, highlighting the massive potential of AI software [9] - Agentforce is expected to be a game changer for Salesforce, though the exact impact on TAM and growth remains unclear [10]