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Heightened AI Competition Fuels Analyst Skepticism on Adobe (ADBE)

Adobe Inc. (NASDAQ:ADBE) is one of the most undervalued AI stocks to buy now.

Investors are currently skeptical of Adobe Inc. (NASDAQ:ADBE) amid heightened competition from AI-powered tools. AI coding systems directly hamper the company’s core creative franchise, as they enable the easy building of competing solutions, eliminating the need for costly software packages.

Therefore, only 55% of analysts who cover the stock are bullish on Adobe Inc. (NASDAQ:ADBE) as of February 25, 2026. This is a significant decline from a year ago, when roughly 72% of the covering analysts were bullish on it. Yet the consensus price target currently reflects upside potential of approximately 60%.

At the same time, Adobe Inc. (NASDAQ:ADBE) faces share price pressure as sentiment continues to weaken amid AI disruption. Having experienced a share price decline of roughly 25% and over 40% on a YTD and one-year basis, the stock reached its 52-week low on February 24, 2026.

AI remains a threat to software stocks, prompting Polar Capital to sell almost all of the firm’s stake in Adobe Inc. (NASDAQ:ADBE) and other software companies such as SAP SE, ServiceNow, and HubSpot. On February 16, 2026, one of the firm’s analysts, Nick Evans, said, “We think application software faces an existential threat from AI.”

Adobe Inc. (NASDAQ:ADBE), a global technology company, delivers digital marketing and media solutions. The company enables individual consumers and businesses to create, publish, and promote content, as well as utilize its eLearning, technical document publishing, web conferencing, document and forms platforms, web app development, high-end printing, and Adobe Advertising solutions.

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 this cheapest AI stock.

READ NEXT: 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts and 7 Most Volatile Stocks Under $5 for Day Trading.

Disclosure: None.  Follow Insider Monkey on Google News.

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

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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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Wall Street calls this $3 stock a “Melting Ice Cube.” They said the same thing about BTI before it returned 90%.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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We looked under the cover and realized they were wrong.

We alerted our subscribers, and BTI returned 90% in just 16 months.

Now if you had invested just $10,000 in BTI in June 2024, you’d be sitting on $19,000 in October 2025.

Today, we have identified a nearly identical pattern in a digital-first giant trading at $3.

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This pattern is a hallmark of our 16.5% annual return track record. The current opportunity offers a 400% upside potential—dwarfing even our 90% BTI return.

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