Salesforce's AI Push Delivers Revenue Surge, Intel Faces Leadership Shakeup

At a Glance 

• Salesforce exceeds expectations, riding high on its AI strategy
• Intel’s CEO exits with $10M as AI challenges mount

Salesforce Exceeds Expectations, Riding High on its AI Strategy

Salesforce Inc. reported a robust quarterly revenue of $9.44 billion, exceeding analysts’ estimates of $9.35 billion and marking an 8.3% increase for the period ending October 31. The adjusted operating margin stood at 33.1%, surpassing the average forecast of 32.2%. The announcement boosted investor confidence in Salesforce’s AI-driven strategy, with shares climbing more than 8% in extended trading. 

“The higher-than-expected profit margin is the standout number in results,” 

said Anurag Rana, an analyst at Bloomberg Intelligence, during an interview on Bloomberg Television.

The company’s pivot to artificial intelligence has been anchored by Agentforce, a new product launched in October and priced at $2 per agent conversation. Agentforce automates tasks such as customer support and sales development, marking a significant step in Salesforce's AI evolution. CEO Marc Benioff expressed confidence in the product, declaring, 

“I’m so confident in Agentforce that we’re adding 1,000 employees to sell it.” 

This hiring spree comes after two years of cost-cutting measures, including layoffs, as the company worked to improve profitability under pressure from activist investors. Executive Vice President Mike Spencer noted, 

“We’ve signed a good number of deals related to Agentforce,” 

though he acknowledged these are initial rollouts and will take time to impact financial results.

Salesforce’s shares have rebounded more than 50% this year after hitting a low in May, driven by growing enthusiasm for its AI strategy. Citigroup analyst Tyler Radke observed, “Agentforce has overtaken the CRM narrative by storm,” emphasizing the transformative role of the new AI tools. On a conference call, Benioff downplayed the quarterly numbers, saying,

“As I’m sure everybody knows on the quarter — these numbers are not what we’re really excited about. And while the quarter numbers are fantastic, the real excitement is really what is hitting with the technology.”

The company’s strong earnings, combined with optimism for its AI initiatives, have positioned Salesforce as a leader in redefining customer relationship management.

Intel CEO Steps Down Amid Mounting AI Challenges

Intel’s top brass pulled a page straight out of the corporate drama playbook this weekend, delivering CEO Patrick Gelsinger an ultimatum: resign or be fired. After a turbulent tenure marked by ambitious promises and middling results, Gelsinger stepped down effective December 1, leaving Intel with a lot of soul-searching—and a hefty severance bill. For his “challenging year,” Gelsinger is walking away with a compensation package worth at least $10 million, proving that sometimes the AI race isn’t the only game in town—there’s also the game of golden parachutes. As he put it, 

“It has been a challenging year for all of us as we have made tough but necessary decisions to position Intel for the current market dynamics.”

This isn’t just about one man’s fall from grace. Intel, once a Silicon Valley pioneer synonymous with innovation, is now navigating an identity crisis. Nvidia has lapped Intel in the AI chip race, and Wall Street whispers of a breakup or takeover are growing louder. The company’s turnaround hopes rested on Gelsinger’s ambitious pledge to leapfrog rivals by introducing five production processes in four years and catching up to Taiwan Semiconductor Manufacturing Company (TSMC) by 2025. But with manufacturing setbacks and an inability to cash in on mobile processors and AI chips, Intel seems more like the underdog in this tech saga.

While Intel scrambles to restore investor confidence, interim executive chair Frank Yeary is keeping the optimism alive, stating, 

“We have much more work to do at the company and are committed to restoring investor confidence.” 

For now, Intel will lean on its interim co-CEOs as it searches for a leader who can rebuild its legacy in an era dominated by AI-driven innovation. Whether Intel can reclaim its place in the semiconductor pantheon—or if it will remain a case study in missed opportunities—only time will tell.