5 Best Tech Stocks for the Next 5 Years

4. Adobe Inc (NASDAQ:ADBE)

Number of Hedge Fund Investors: 112

Adobe Inc (NASDAQ:ADBE) ranks fourth in our list of the best technology stocks to buy for the next five years according to UBS. UBS likes the stock due to brand image and pricing power. UBS said Adobe’s launch of its generative AI model Firefly will help it with growth. The analyst firm is also bullish on Adobe Inc’s (NASDAQ:ADBE) transition to a subscription model.

As of the end of the third quarter of 2023, 112 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Adobe Inc (NASDAQ:ADBE).

Here is what Polen Global Growth has to say about Adobe Inc. (NASDAQ:ADBE) in its Q3 2023 investor letter:

“Both Alphabet and Adobe’s businesses continue to perform well. With respect to Adobe, the most recent quarter delivered more of the same with constant currency revenue growing 13%, margin expansion, and over 2% of shares outstanding repurchased for non-GAAP earnings growth of over 20%. We believe its approach to GenAI through Firefly, which guarantees safe content because it trains on Adobe Stock, will continue to be attractive to enterprises. The counter to GenAI, and something we are keeping an eye on with Alphabet and Adobe, is that it requires heavy investment. While both businesses can leverage their scale and manage costs in other areas, we expect the investment in future growth through GenAI will weigh on company-wide margins over the near term.”