10 Most Undervalued AI Stocks to Buy According to Analysts

8. Adobe Inc. (NASDAQ:ADBE)

P/E Ratio: 18.80

No. of Hedge Fund Investors: 111

Analyst Upside: 21.78%

Adobe Inc. (NASDAQ:ADBE) is one of the 10 Most Undervalued AI Stocks to Buy According to Analysts. On June 26, BofA reiterated its Buy rating on Adobe Inc. stock, keeping the price target at $475.

Bradley Sills remains optimistic about Adobe’s prospects, citing the company’s strategic positioning and strong financial results during Q2 2025. The company achieved record revenue of $5.87 billion, up 11% year-over-year and beating estimates by $73.73 million. The company’s Digital Media segment recorded $4.35 billion in revenue, indicating a 12% year-over-year growth in ARR. Adobe’s AI initiatives, such as Acrobat AI Assistant and Firefly, are massively contributing to revenue, with AI-driven ARR tracking ahead of the $250 million target of 2025.

The analyst believes that Adobe Inc. (NASDAQ:ADBE) is in the early stages of the agentic AI cycle, which is expected to improve its competitive edge in the creative professional market. Adobe’s growth in AI-influenced products will further strengthen its core offerings and expand its market reach. Sills sees Adobe’s commitment to data governance and security to be key for its cloud capabilities and integration with third-party models.

Adobe Inc. (NASDAQ:ADBE) is a technology company that offers creator tools and services to individuals, teams, and enterprises to create, publish, and promote content. Adobe is evolving into an AI-driven company through its generative AI tools.