12 Most Promising AI Stocks According to Wall Street Analysts

4) Adobe Inc. (NASDAQ:ADBE)

Average Upside Potential: ~42.9%

Number of Hedge Fund Holders: 123

Adobe Inc. (NASDAQ:ADBE) is a major player in the broader AI industry as it has embedded artificial intelligence throughout its products and services. The company has made strides with its Firefly GenAI technology and continues to integrate AI capabilities throughout its Creative, Document, and Experience Clouds. The company’s optimistic outlook is driven by its steps to improve AI-powered features and expand its use throughout the suite of design and marketing software. Adobe Inc. (NASDAQ:ADBE)’s emphasis on commercial-safe generative AI gives it a competitive edge, helping marketers in creating and optimizing advertising across various media.

The company’s investments in AI technology, mainly its Firefly generative AI platform, can significantly expand its total addressable market. As creative tools become more accessible and powerful, Adobe Inc. (NASDAQ:ADBE) can attract new user segments. Furthermore, with AI becoming more integrated into creative workflows, the company’s expertise in creative software and AI places it in a favorable position to capture emerging opportunities.

Adobe Inc. (NASDAQ:ADBE)’s capability to combine domain-specific knowledge with advanced AI capabilities is expected to result in innovative solutions creating new market categories and revenue streams. Polen Capital, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“We added to several existing positions in the quarter including Adobe Inc. (NASDAQ:ADBE), Workday, Shopify, MSCI, and Paycom Software. We feel Adobe is poised for re-accelerating revenue and earnings growth partially due to the monetization of its Firefly GenAI product embedded in its creative software.”