20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

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5) Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 123

Average Upside Potential: 49.6%

Adobe Inc. (NASDAQ:ADBE) continues to focus on innovation, mainly in the AI space. It has made numerous strides with its Firefly generative AI technology and has been integrating AI capabilities throughout its Creative, Document, and Experience Clouds, targeting to enhance user productivity and expand product offerings. The company introduced enhancements to Photoshop and Illustrator, such as Distraction Removal and Generative Shape Fill, which uses AI to streamline creative workflows. On 20th November, Morgan Stanley analyst, Keith Weiss, gave a “Buy” rating on the shares of Adobe Inc. (NASDAQ:ADBE) with a price target of $660.00.

The analyst expressed optimism about the company’s strategic positioning in the GenAI landscape. Morgan Stanley has tagged Adobe Inc. (NASDAQ:ADBE)’s extensive workflows and datasets as “key assets” that can help it capitalize on GenAI innovations. The company’s differentiated position places it in a good position to benefit from GenAI. Moreover, its enhanced transparency and clear growth catalysts are expected to fuel investor confidence and help Adobe Inc. (NASDAQ:ADBE) achieve significant GenAI-driven growth by next year.

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.”

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