10 AI Stocks on Investors’ Radar In January 2025

6. Adobe Inc (NASDAQ:ADBE)

Number of Hedge Fund Investors: 123

Ray Wang, Constellation Research principal analyst, recently explained on CNBC why he is bullish on Adobe Inc (NASDAQ:ADBE) for 2025:

“We’re big on AI, but the question is, what are the AI derivatives? So, what are the second-order and third-order derivatives of AI? The second-order ones are looking at software companies that are taking advantage of AI because most customers can’t build it on their own. They’re going to want to consume it.”

Parnassus Core Equity Fund stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:

“Also in the Information Technology sector, we exited a position in Adobe Inc. (NASDAQ:ADBE) and initiated a new one in Synopsys. Adobe is contending with market cyclicality, rising competition and lofty AI monetization expectations that are unlikely to be met in the near term. We sold Adobe for Synopsys, which faces fewer competitive threats and has room to grow as companies adopt Synopsys software for custom semiconductor design.”