Updated
Updated · CNBC · Sep 3
CNBC Investing Club Raises Microsoft to $550 and Salesforce to $290 as Software Rally Extends
Updated
Updated · CNBC · Sep 3

CNBC Investing Club Raises Microsoft to $550 and Salesforce to $290 as Software Rally Extends

2 articles · Updated · CNBC · Sep 3

Summary

  • $550 for Microsoft and $290 for Salesforce mark new CNBC Investing Club price targets after both stocks climbed past prior targets of $500 and $250.
  • Microsoft has risen about 25% since its July 29 earnings, while Salesforce is up 29% since Aug. 26, as investors grow more confident AI will not displace enterprise software vendors.
  • Microsoft is getting credit for stronger Microsoft 365 Copilot traction and disciplined AI infrastructure spending, while Salesforce could get another catalyst from its Dreamforce conference in two weeks.
  • The broader market also helped: Treasury yields fell after Fed Governor Christopher Waller backed holding rates steady, cutting implied odds of a Sept. 15-16 hike to 52% from 63%.

Insights

Microsoft and Salesforce are surging on AI profits, but could hidden infrastructure costs silently crush this software rally?
With rate hike odds plummeting and a stagnant labor market looming, is Wall Street ignoring a hidden recession trap?