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Goldman Sachs Reiterates Buy on Adobe (ADBE) with $570 Target Amid Rising AI Momentum

Adobe Inc. (NASDAQ:ADBE) is one of the 12 AI Stocks Every Investor Should Be Watching. On June 13, Goldman Sachs analyst Kash Rangan reiterated a “Buy” rating on the stock with a $570.00 price target. The rating reaffirmation follows Adobe’s fiscal second quarter 2025 results.

Despite outperforming and raising +1% to fiscal 2025 Digital Media revenue, Rangan noted how the stock fell after hours as investors have been unsure if Adobe can be consistent with its double-digit top-line growth and whether its AI revenue contribution is tangible.

Nevertheless, the firm is optimistic about Adobe’s growth trajectory due to its Adobe Experience Platform and its Apps subscription revenue, which have been up 40% year-over-year. The company’s Express platform has added over 8,000 businesses, serving as a reliable engine for user acquisition. Adobe’s AI adoption is also accelerating, resulting in Firefly App first-time subscribers of +30% Q/Q.

A financial analyst at his computer monitor, tracking the public company’s investments.

Rangan is particularly optimistic about Adobe’s AI strategy. He believes it is growing to play a larger role in the company’s narrative as it can help make the company’s products better and allow customers to buy higher-priced SKUs, such as the CC Pro. He noted how early evidence from the core CC suite has been promising.

Adobe expects AI-standalone SKUs to surpass a $250 million run-rate by the fourth quarter of fiscal 2025. The firm believes that this could provide additional revenue growth. All in all, Rangan believes Adobe is well-positioned to benefit as Gen-AI spending transitions from Infrastructure into Platform and Application layers.

“We reiterate our Buy rating and $570 PT following Adobe’s F2Q25 results.”

While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks on Wall Street’s Radar and 15 AI Stocks Making Waves on Wall Street.

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.

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

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

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

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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