10 Hot AI Stocks to Keep on Your Radar

4. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 104

Adobe Inc. (NASDAQ:ADBE) is one of the 10 Hot AI Stocks to Keep on Your Radar. On September 9, Stifel analyst Parker Lane reiterated a Buy rating on the stock with a $480.00 price target.

The rating follows investor concerns regarding Adobe’s competitive moat as newer and more disruptive models leveraging generative AI are emerging.

The firm talked to five Creative Cloud customers to see how leading brands have been adapting. It believes that Adobe is ahead in AI adoption but acknowledges the fear around competition and the future state of Creative teams.

“In light of the recent pricing increases and continued headlines and investor concerns over generative AI’s role in the world of content creation, we spoke with five Creative Cloud customers to get feedback on how leading brands are navigating the evolving digital media environment. Compared to other end-markets, we believe the Creative space is further along in the adoption of generative AI tools and workflows, with all customers we spoke with leveraging Firefly, among other models and tools to some extent today. In this note we explore the various debates, positive and negative, around Adobe today. Given the depressed performance and multiple of shares relative to the 2025 outlook, we see a favorable near-term risk/reward, while acknowledging that fears around competition and the future state of Creative teams and departments remain uncertain and top of mind for investors. Maintain Buy and $480 TP.”

Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.