Matthew Bloxham

Salesforce is one of these legacy software companies which people are looking at to see whether they can transition into an AI-led environment.

And they're making some progress with their agent force AI tool on track to kind of generate annualized revenue of about $1.2 billion.

But that's just a few percent of their annual $45, $46 billion revenue.

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Salesforce is one of these legacy software companies which people are looking at to see whether they can transition into an AI-led environment.

And they're making some progress with their agent force AI tool on track to kind of generate annualized revenue of about $1.2 billion.

But that's just a few percent of their annual $45, $46 billion revenues.

That only holds if this big surge in sales and profit is sustainable.

And the question there is still this unanswered question about whether the AI boom is going to continue the way we're seeing it right now, because there's huge amounts of capacity being brought into the system by all the big hyperscalers and needs to be follow-up demands and sustained demand from corporates to kind of continue with that capacity demand for the coming four, five, six years.

This kind of really comes down to whether you believe this kind of demand surge for high bandwidth memory and those kind of chips is really sustainable or not.

We're seeing huge growth in sales and profit for these businesses on a 12-month view.

And that's kind of what's really pointing analysts to suggest that these companies still look relatively cheap.

on forward valuation multiples.

This kind of really comes down to whether you believe this kind of demand surge for high bandwidth memory and those kind of chips is really sustainable or not.

We're seeing huge growth in sales and profit for these businesses on a 12-month view.

And that's kind of what's really pointing analysts to suggest that these companies still look relatively cheap on forward valuation multiples.

And from London, I'm looking at what all that means for markets, money and the wider economy.

As we know, the world is shifting very rapidly towards agentic AI as the kind of near-term future of that technology.

And it's an area that Meta has been looking to kind of boost its capabilities.