Salesforce.com shares rose on Thursday after the software giant reported strong fourth-quarter results, although its full-year revenue outlook fell short of expectations.

The weak guidance led some analysts to lower their price targets, yet most maintained a bullish stance on the stock.

Is Salesforce's stock poised for a rebound after showing signs of AI-driven gains?

On a day when the broader technology sector declined, the stock climbed 4%, closing just below $200, making it the top performer in the Dow Jones Industrial Average.

The software giant reported fourth-quarter sales and profit that surpassed analysts' estimates after Wednesday's market close, partly due to growing demand for its AI products, though its full-year revenue forecast missed expectations.

Why It Matters

These results may help improve sentiment around Salesforce's stock. In recent weeks, the company, along with other software stocks, has faced pressure due to concerns about the disruptive impact of artificial intelligence.

Wedbush described the recent sell-off in software stocks as "overdone" and stated on Thursday that it views Salesforce as a "long-term winner" in the AI boom, even though the firm lowered its price target from $375 to $325 following the earnings report.

Goldman Sachs and Deutsche Bank, which both rate the stock as a "Buy," also reduced their price targets to $281 and $255, respectively. These targets still imply significant upside potential for the stock.

Despite Thursday's gains, Salesforce shares have declined approximately 25% since the start of the year.