12 Cheap AI Stocks to Buy in 2025

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2. Adobe Inc. (NASDAQ:ADBE)

Analyst Upside (as of January 27): 42.50%

No. of Hedge Fund Holders: 123

Adobe Inc. (NASDAQ:ADBE) operates as a diversified software company internationally. In 2023, the company launched Firefly, a collection of generative AI models designed to improve creative workflows, making its mark among AI companies. In October 2024, the company released the beta version of its Firefly Video Model, expanding its family of creative Gen AI models.

Similarly, on January 22, the company announced innovations to its AI tools and a $5 million investment in Adobe Film and TV Fund to expand its filmmaking network by supporting creators and filmmakers. In addition to that, Adobe Inc. (NASDAQ:ADBE) has revealed new features in Adobe Premiere Pro, After Effects, and Fame.io to enhance post-production and minimize the time spent on videos.

During the fourth quarter of 2024, Adobe Inc. (NASDAQ:ADBE) reported a record growth revenue of $21.51 billion, up by 11% year-over-year. The AI innovation has fueled the company’s growth, with Firefly-powered generations surpassing 16 billion. The company’s digital media business posted a record ARR of $578 million in Q4. Adobe continues to improve its presence among big players, with 48 of the Fortune 100 companies leveraging Adobe services.

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