5 Fastest Growing AI Stocks To Buy

4. Adobe Inc. (NASDAQ:ADBE)

1-year stock price growth as of August 29: 44.13%

Number of Hedge Fund Holders: 109

Adobe Inc. (NASDAQ:ADBE) is a California-based computer software company. The company has recently made strides in generative AI for creatives with Adobe Firefly. The company is looking to patent a system that is expected to introduce AI to the diversity, equity, and inclusion framework of organizations.

In the second quarter, Adobe Inc. (NASDAQ:ADBE)’s hedge fund holders increased to 109 from 99 in the previous quarter. Citadel Investment Group owned over 1.34 million of the company shares worth $657.605 million, making it the largest stakeholder in Adobe Inc. (NASDAQ:ADBE).

On August 17, Bank of America analyst Brad Sills upgraded Adobe Inc. (NASDAQ:ADBE)’s stock to Buy from Neutral and raised his price target to $630 from $575. The analyst believes that the company will experience incremental growth in 2024 due to AI.

Polen Capital made the following comment about Adobe Inc. (NASDAQ:ADBE) in its second quarter 2023 investor letter:

“While Adobe Inc. (NASDAQ:ADBE)’s growth has moderated from high teens to low teens during the past couple of years, Adobe continues to deliver solid growth, and management raised its full-year guidance during the most recent quarter. The company also introduced some AI product enhancements, which seem to have helped shift the narrative from “AI is going to be bad for Adobe” to “AI is going to be good.” Finally, the company continues to work towards the Figma acquisition.

It’s still uncertain whether antitrust regulators will allow this acquisition to close. That said, the stock seems to have been recovering from the initial reaction that the pricey acquisition indicated something more troubling about Adobe’s growth and competitive position. Solid ongoing fundaments have helped dispel that notion. We think it would be a big positive if the acquisition closes, but we remain confident in Adobe’s business even if it doesn’t.”