12 Trending AI Stocks on Latest News and Ratings

Page 11 of 11

1. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 123

Adobe Inc. (NASDAQ:ADBE) integrates AI across its products to enhance content creation, marketing, and customer experiences.

On December 12, DA Davidson analyst Gil Luria reduced Adobe’s (NASDAQ:ADBE) price target from $685 to $625 while maintaining a Buy rating. The company’s Q4 results exceeded expectations, with both revenue and earnings outperforming consensus. Adobe’s management provided positive commentary on AI, although it emphasized that AI monetization is still in its early stages, the firm noted.

The company’s FY25 outlook, which implied a revenue growth of around 9%, came in lower than expected. However, the analyst views this guidance as potentially conservative, considering Adobe’s growth opportunities, such as monetizing its value for enterprises and expanding its freemium offerings.

While we acknowledge the potential of Adobe Inc. (NASDAQ:ADBE) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ADBE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 11 of 11