We recently compiled a list of the 14 Best American Tech Stocks To Buy Now. In this article, we are going to take a look at where Adobe Inc. (NASDAQ:ADBE) stands against the other American tech stocks.
American stocks moved up a bit on Monday, April 14 as investors focused on news about tech companies getting a break from President Trump’s tariffs. The S&P 500 rose by 0.8%, the tech-heavy Nasdaq rose by 0.6%, and the Dow Jones Industrial Average increased by about 0.7%.
READ ALSO: 11 Best American Energy Stocks to Buy Now and 10 Best Stocks Under $10 to Buy Now.
In recent days, President Trump and his advisers have given mixed signals on the future of tariffs on China and on specific industries. Over the weekend, big American tech companies scored a victory when it was revealed that the US had not put tariffs on smartphones, computers, and other consumer electronics.
However, on Sunday, US Commerce Secretary Howard Lutnick stated that these electronics would soon be covered under new tariffs, which would be different from those imposed on specific countries. President Trump also posted on social media that there would be “no exception” for these products. He also said that the government is looking at semiconductors and the entire electronics supply chain in the upcoming National Security Tariff Investigations.
Last week was the best week for the major indexes since at least 2023. However, with all this uncertainty, Wall Street is getting ready for another week of potential tariff-fueled ups and downs.
Methodology
To compile our list of the 14 best American tech stocks to buy now, we used stock screeners from Finviz and Yahoo Finance to find the largest American technology companies. We sorted our results based on market capitalization and picked the top 30 American stocks. Next, we focused on the 14 stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 14 best American tech stocks to buy now were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q4 2024.
Why do we care about what hedge funds do? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 117
Adobe Inc. (NASDAQ:ADBE) is an American technology and computer software company that offers creative software applications. The company’s products, services, and solutions allow individual creators, small businesses, and global enterprises to create, edit, and publish digital content across a range of media formats such as graphics, photography, video, and web design. Adobe Inc. (NASDAQ:ADBE) is one of the best American stocks to buy now.
On April 4, Mizuho Securities maintained an “Outperform” rating on Adobe Inc. (NASDAQ:ADBE) with a price target of $575. This decision came after in-person meetings with the company’s Chief Financial Officer Dan Durn, Digital Experience CFO and Interim Head of Investor Relations Steve Day, and Director of Investor Relations Nihar Barbhaiya. Adobe Inc.’s (NASDAQ:ADBE) executives highlighted the company’s strong market position and the potential for growth in revenue generation. Adobe Inc. (NASDAQ:ADBE) had a challenging year but Mizuho highlighted the company’s recent progress in monetizing its Generative AI innovations as a positive sign. The analysts also expressed confidence in Adobe Inc.’s (NASDAQ:ADBE) financial outlook. Despite increased macroeconomic uncertainty, they believe that the company’s fiscal year 2025 annual recurring revenue and overall revenue targets are achievable. Mizuho pointed out that Adobe Inc. (NASDAQ:ADBE) stands out as a unique software company that can achieve double-digit growth at scale, combined with strong and stable margins, all while trading below 15 times its projected free cash flow for calendar year 2026.
Overall, ADBE ranks 10th on our list of the best American tech stocks to buy now. While we acknowledge the potential of ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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.
