We recently published a list of 12 Trending AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Adobe Inc. (NASDAQ:ADBE) stands against other trending AI stocks on latest news and ratings.
Addressing Power Shortages for AI Data Centers
The demand for energy-intensive AI data centers is outpacing supply, and while solutions like crypto site conversions, and nuclear power are promising, substantial action is needed to prevent significant power shortages in the near future.
In an interview on CNBC’s ‘The Exchange,’ Stephen Byrd from Morgan Stanley discussed the potential for converting crypto mining sites into data centers to address the power shortage for AI data centers. He noted that while Bitcoin mining companies have lucrative options, including converting sites into data centers, the high price of Bitcoin complicates decisions.
Byrd estimated a significant power shortfall of over 30 gigawatts by 2028, with solutions like Bloom Energy’s fuel cells and crypto site conversions offering partial relief. However, he warns that connecting new data centers to the grid could take years, and prices for electricity are likely to rise, creating potential political challenges. Other solutions include nuclear power and natural gas turbines, especially in regions like West Texas.
READ ALSO: Top 15 AI Stock News and Ratings Dominating Wall Street and Jim Cramer Discussed 18 Companies That Hit $100 Billion in Market Cap in 2024.
Oil Giants Explore Power Solutions for AI Data Centers
Major U.S. oil companies are considering entering the electricity market by supplying natural gas-powered electricity with carbon capture technologies to meet the growing energy demands of AI data centers. Reuters reported that Chevron has been in talks for over a year to provide natural gas-fired power combined with carbon capture solutions, while Exxon plans to offer low-carbon electricity to data centers by the end of the decade.
The move comes as the rise of AI technologies is driving a significant increase in electricity demand, prompting the need for new energy infrastructure. The companies plan to use their expertise in natural gas and carbon capture to help meet this demand, potentially reshaping the power market.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of engineers and scientists collaborating at a workstation surrounded by their applications and solutions.
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.
Overall, ADBE ranks 1st on our list of trending AI stocks on latest news and ratings. 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 time frame. 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.
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Disclosure: None. This article is originally published at Insider Monkey.
