The AI Hype Might Be Real for Adobe, But Is the Stock a Buy?
Since the release of generative AI platforms like ChatGPT, artificial intelligence (AI) has been a hot topic just about everywhere. Within the world of investing it has been especially prominent as analysts, executives, and individual investors try to determine where this new technology might enhance or disrupt particular industries or businesses.
As with most new things, publicly traded companies have been in a rush to demonstrate their AI credentials, with mentions of AI increasing on earnings conference calls. For some companies it's a stretch to find genuine AI use cases. For others, it's a legitimate part of the business strategy, and has been long before AI was in the mainstream consciousness. Creativity and business productivity software company (NASDAQ: ADBE) falls into the latter category and has legitimate use cases for AI. The question for investors is if this makes the stock a buy, or if the hype is inflating the share price.
In March of 2023, Adobe released its Firefly family of generative AI models. Over the months since the announcement, the company has added Firefly capability to more of its products. Firefly allows creators to use text to create what they need. For example, a user could type in a prompt like "cat wearing a fedora" and Firefly can create that image.
Source Fool.com
Adobe Inc. Stock
The stock is one of the favorites of our community with 45 Buy predictions and 2 Sell predictions.
With a target price of 590 € there is a positive potential of 32.94% for Adobe Inc. compared to the current price of 443.8 €.
