12 AI Stocks in the Spotlight for Investors

5. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 88

Adobe Inc. (NASDAQ:ADBE) is one of the 12 AI Stocks in the Spotlight for Investors. On December 15, BMO Capital lowered its price target on the stock to $400 from $405 while maintaining an “Outperform” rating. The firm remains cautiously positive on the stock despite robust Q4 FY2025 results, citing competitive pressure in lower-end and AI segments.

Adobe reported upside in both net new Annual Recurring Revenue (ARR) and total revenues, showcasing robust performance against low market expectations.

It also guided roughly in line with consensus for FY26 revenues, which the firm views as a reasonable starting point with potential for growth in net new and total ARR in FY26 vs FY25.

While the firm does acknowledge Adobe’s solid results, it also believes that the competitive environment remains “challenging.”

“Hence, against low expectations, we think results were solid. At the same time, we believe the competitive environment remains challenging particularly with lower-end users and AI applications. Net, we remain Outperform though lower our price target to $400 from $405.”

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