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Generative AI Tools Threaten Adobe’s (ADBE) Edge, Analyst Reiterates Sell

Adobe Inc. (NASDAQ:ADBE) is a Must-Watch AI Stocks on Wall StreetOn September 1, Rothschild Redburn analyst Omar Sheikh reiterated a Sell rating on the stock with a $280.00 price target.

The firm said that it spent the last few days testing the released preview of Google’s Nano Banana image editing model. Their takeaway is that it has the potential to seriously challenge Adobe Photoshop, impacting Adobe’s ability to gain new customers and raise prices.

Both Nano Banana and Runway’s Aleph have been leveraging generative AI for their tools, demonstrating the fast pace of improvement. Newer and more disruptive models could emerge within months, putting a question mark on Adobe’s competitive moat.

“We spent the last few days testing the recently released preview of Google’s Nano Banana image editing model. We believe it will disrupt Photoshop, one of Adobe’s most widely-used applications, adding to ongoing pressure on the company’s seat growth and pricing power. Nano Banana and Runway’s Aleph demonstrate the leap forward in the performance of genAI tools in recent months, and the pace of improvement is a key concern: image and video generation models with fully editable outputs look increasingly likely to emerge within months, which we argue will call into question the durability of Adobe’s moat. We reiterate our Sell rating.”

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: 10 AI Stocks Hit with New Analyst Ratings and 10 AI Stocks Investors Should Keep on Their Radar

Disclosure: None.

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.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

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.

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