6. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 86
Adobe Inc. (NASDAQ:ADBE) is one of the best AI software stocks to buy according to hedge funds. Citi cut the price target on Adobe Inc. (NASDAQ:ADBE) to $228 from $264 on June 12 and reaffirmed a Neutral rating on the shares, telling investors in a research note that the company reported “relatively solid” fiscal Q2 numbers. However, Citi pointed to “more signs of disruption” with an implied $500M cut in its fiscal 2026 organic annual recurring revenue outlook. The firm cut estimates post the earnings print.
Adobe Inc. (NASDAQ:ADBE) also received a rating update from Freedom Broker on the same day. The firm downgraded the stock to Hold from Buy, bringing the price target on the shares down to $250 from $510 and telling investors in a research note that the company’s growth quality shifted this quarter, as the acceleration was acquired rather than organic. It believes that the company is now in a “show-me phase” and added that management is deliberately trading near-term subscription revenue for top-of-funnel reach.
Adobe Inc. (NASDAQ:ADBE) is a global technology company that provides digital marketing and media solutions. The company’s operations are divided into the following segments: Digital Media, Digital Experience, and Publishing and Advertising.
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 the cheapest AI stock.
Click to continue reading and see the 5 Best AI Software Stocks to Buy According to Hedge Funds.
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