HSBC Downplays SaaS Sector Apocalypse Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy CRM?
Source: Benzinga
- AI and SaaS Relationship: HSBC believes that the development of artificial intelligence will benefit the software industry rather than replace the software-as-a-service (SaaS) sector, indicating an optimistic outlook for the industry's future.
- Challenges of In-House Development: HSBC points out that relying on AI for companies to develop their own software is neither practical nor cost-effective, and even if AI-driven 'vibe-coding' could produce superior or free software, replacing established vendors remains a significant challenge.
- Interaction Between Software and AI: HSBC emphasizes that 'software is already eating AI' and expects this trend to continue, highlighting the central role of software in the technological ecosystem.
- Market Confidence Transmission: HSBC's perspective helps alleviate market concerns about the future of the SaaS industry, potentially boosting investor confidence in related companies and promoting industry stability.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 198.790
Low
223.00
Averages
326.40
High
405.00
Current: 198.790
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a provider of customer relationship management (CRM) technology. The Company helps organizations of any size reimagine their business for the world of artificial intelligence (AI). With Agentforce, its platform, organizations can bring humans together with AI agents to drive customer success on one deeply unified platform. With the Salesforce platform, it delivers a single source of truth, connecting customer data with integrated AI across systems, apps and devices to help companies sell, service, market and conduct commerce from anywhere. Agentforce is a new layer of the Salesforce platform that enables companies to build and deploy AI agents that can respond to inputs, make decisions and take action autonomously across business functions. Agentforce includes a suite of customizable agents for use across sales, service, marketing and commerce. Datablazer is a data-driven innovator, which leverages the Company’s platform to unlock insights and drive decisions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Salesforce Market Rebound: Salesforce's stock has fallen nearly 50% from its 2024 peak, yet analysts maintain an optimistic outlook with a 42% upside potential in the next 12 months, bolstered by expected double-digit revenue growth in the second half of the fiscal year.
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See More
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- New Application Development: CEO Mike Sicilia announced the development of three new applications for sales lead generation, sales automation, and website building, which have no direct competitors in the market, aiming to directly challenge Salesforce's core offerings.
- AI Technology Integration: Oracle is rapidly building new SaaS products using small engineering teams and embedding AI agents into existing applications, enhancing product competitiveness and expected to further boost customer sales capabilities, driving enterprise digital transformation.
- Intensifying Market Competition: As Oracle expands its application portfolio to directly challenge Salesforce, analysts note that both companies are increasing investments in industry-specific solutions, intensifying competition and potentially increasing Oracle's market share.
See More
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See More
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- Microsoft's Market Confidence: Despite Microsoft's stock stalling in Q4 2025, analysts project a 46% upside in its 12-month price target compared to its current price, indicating trust in its long-term growth potential in AI and cloud services.
- Salesforce's Recovery Outlook: Salesforce's stock has dropped nearly 50% from its 2024 peak, but analysts see a 42% upside in its 12-month price target, with the company expecting accelerated growth in the second half of the fiscal year, reflecting optimism about its recovery.
- Overall Industry Optimism: All three companies are affected by the
See More
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See More
