12 Stocks on Jim Cramer’s Radar

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1. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holdings: 88

Productivity software provider Adobe Inc. (NASDAQ:ADBE)’s shares have struggled in today’s AI era. They are down by 42% over the past year and by 23% year-to-date. HSBC discussed the firm’s shares on February 13th. It cut the share price target to $302 from $388 and kept a Hold rating, as per The Fly. Unsurprisingly, the bank pointed out that Adobe Inc. (NASDAQ:ADBE) was facing risks from AI tools. Piper Sandler also cut the price target. It reduced it to $330 from $470 and slashed the rating to Neutral from Overweight. The financial firm commented that the threat faced by seat-based software businesses from AI could affect Adobe Inc. (NASDAQ:ADBE) as well. Like the analysts, Cramer has also discussed the software firm several times. He believes that the software company’s pricey products can be replaced by cheaper alternatives. In this appearance, the CNBC TV host kept up the pessimism for Adobe Inc. (NASDAQ:ADBE):

“I think that Figna is a company that does not have nearly the moat that they think. I think the same way about Adobe, unfortunately.

And I just, you can go on, you can go on, any one of these sites and do what they want. I go on Claude and you can develop a terrific package. . .It’s just too easy, I’m sorry Canva. I’m sorry. And by the way, Adobe 600 bucks, no. Not paying, not paying.”

While we acknowledge the potential of ADBE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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