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Strong Results, Softer Outlook: What’s Next for Adobe Inc. (ADBE)?

Adobe Inc. (NASDAQ:ADBE) is among the most undervalued tech giants to buy according to hedge funds. As of December 26, Adobe Inc. (NASDAQ:ADBE) has a ‘Buy’ or equivalent rating from 67% of the analysts covering the stock. With a median price target of $422.50, the stock has an upside potential of 19.73%. On December 17, Tyler Radke from Citi raised the price target on ADBE to $387 from $366 and kept a ‘Neutral’ rating. This revision, implying an upside potential of approximately 10%, follows the company’s updated model following the fiscal Q4 report. According to the analyst, the quarter demonstrated upside, but the fiscal 2026 outlook was mixed.

When Adobe Inc. (NASDAQ:ADBE) announced its fourth-quarter results on December 10, the company outperformed with an EPS estimate of $5.50, marginally above projections of $5.40. Similarly, the company delivered a revenue of $6.19 billion, surpassing the forecasted $6.11 billion. Since then, several analysts have adjusted their forecasts.

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On December 15, BMO Capital trimmed the price target on Adobe Inc. (NASDAQ:ADBE) to $400 from $405, keeping an ‘Outperform’ rating. Earlier on December 11, Evercore ISI reduced the price target to $425 from $450 and reiterated an ‘Outperform’ rating. The firm noted that although the company’s FY26 guidance is solid, the outlook reflects moderate growth relative to FY25.

Adobe Inc. (NASDAQ:ADBE) is a California-based technology company operating through Digital Media, Document Cloud, Creative Cloud, Digital Experience, and Publishing and Advertising segments. Founded in 1982, the company is committed to changing “the world through personalized digital experiences.”

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: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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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