9 Stocks Poised for Gains as AI Reaches New Heights in 2025

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1. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 123

Adobe Inc. (NASDAQ:ADBE) is a technology company that offers products and services that help individuals and teams create, publish and promote content. The stock was under pressure in 2024, going down by 25%. Consequently, UBS analyst Karl Keirstead lowered the firm’s price target to $475 from $525 on January 4, 2024. Nevertheless, the stock commands a moderate “Buy” rating on Wall Street with a $582.96 price target. The positive outlook stems from Adobe Inc. (NASDAQ:ADBE) taking steps to improve AI-powered features and expand their use across its suite of design and marketing software. Its focus on commercial-safe generative AI strengthens its competitive edge on helping marketers create and optimize advertising across various media.

While we acknowledge the potential of 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. This article was originally published at Insider Monkey.

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