13 NASDAQ Stocks with the Highest Upside Potential

5. Adobe Inc. (NASDAQ:ADBE)

Average Upside Potential as of April 8: 54.09%

Number of Hedge Fund Holders: 117

Adobe Inc. (NASDAQ:ADBE) is a tech company that operates through its Digital Media, Digital Experience, and Publishing & Advertising segments. It offers its solutions directly to enterprise customers through its sales force and local field offices, and directly to businesses and consumers. It also licenses its products to end-user customers through app stores and websites.

The company’s Digital Media segment includes Creative Cloud and Document Cloud, which together generated $4.23 billion in FQ1 2025, which was up 12% year-over-year. Digital Media’s annualized recurring revenue was also up 12.6%. This was driven by the growing subscription-based revenue stream within this segment. Other factors that contributed to this growth include Adobe Inc.’s (NASDAQ:ADBE) PDF software, the web and mobile versions of Acrobat also performed well, and Adobe Express.

The integration of GenAI features, such as Firefly, in Adobe Inc.’s (NASDAQ:ADBE) offerings, has been well-received by enterprise customers. For instance, the AI Assistant in Acrobat helps users with tasks like summarizing and editing PDFs. The web and mobile versions of core applications in Creative Cloud, like Photoshop and Illustrator, also had their paid subscriptions grow 35% year-over-year.

Polen Focus Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q3 2024 investor letter:

“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.”