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Adobe Inc. (ADBE)’s Upside Potential at 71% Despite Recent Price Target Reductions

Adobe Inc. (NASDAQ:ADBE) is among the 10 Best Magic Formula Stocks for 2026. On February 23, Jefferies slashed its price target on the stock to $290 from $400, citing the ongoing negative sentiment around application software names, while reiterating a Hold rating.

Shares fell sharply in response to the development, slumping 4.61% on Monday to close at $246.68. Jefferies’ update follows HSBC’s adjustment on the stock on February 13, when it cut the price target to $302 from $388 with a Hold rating. The bank said it anticipates AI-powered tools to pose a competitive risk to the company over the medium to long term.

Earlier in the month, on February 3, Piper Sandler downgraded Adobe Inc. (NASDAQ:ADBE) to Neutral from Overweight and cut its price target to $330 from $470.

Despite recent price target reductions, the stock sports a Moderate Buy rating with an average share price upside potential 70.9%, as of the close on February 23.

Adobe Inc. (NASDAQ:ADBE) is a global technology company that offers a range of web design tools, digital art, content creation, and related services. It is best known for its Adobe Acrobat and Photoshop image-editing tools.

While we acknowledge the risk and potential of ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADBE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Military Technology Stocks to Buy Right Now and 10 Best Meme Stocks to Buy Now.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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