JPMorgan makes Salesforce a top pick for 2017 as an artificial intelligence play

Marc Benioff, CEO of SalesForce.
Adam Jeffery | CNBC

Investors should buy Salesforce shares due to the strong prospects for its cloud software and artificial intelligence offerings, according to JPMorgan, which reiterated its overweight rating.

"In our view, the company is exhibiting good confidence in its growth opportunity, valuation is still reasonably close to historical trough support levels, the Twitter discussion is starting to fade away in favor of AI, and FQ4 results will likely provide a near-term catalyst," analyst Mark Murphy wrote in a note to clients Wednesday. "We reaffirm CRM as our top pick, both tactically and for 2017."

Salesforce ruled out an acquisition bid for Twitter in October 2016 due to shareholder pressure against the deal.