Adobe Reports Growth From New AI Services, but Is the Stock Really a Buy Now?
Share prices of creative software and document management giant Adobe (NASDAQ: ADBE) are making a dramatic comeback. Though shares still trade off nearly 30% from all-time highs that were notched during the pandemic boom, Adobe is getting a positive lift from the artificial intelligence (AI) hype cycle. The stock is up nearly 50% in the last six months.
Despite all the excitement around new AI tools (thanks to Nvidia's work on chips as much as on Adobe's own software development), Adobe is still turning in sluggish financial reports. Is the stock really a buy now?
For all of the wild predictions about generative AI growth (kicked off by the viral ChatGPT service) and how it will transform the world, one might expect Adobe and its new suite of AI-powered tools (called Firefly) to equate to a rapid ramp-up in revenue growth. After all, Nvidia reported expectations its data center chip revenue will nearly double from the most recent quarter to the next because of AI.
Source Fool.com
Adobe Inc. Stock
The stock is one of the favorites of our community with 62 Buy predictions and 2 Sell predictions.
With a target price of 588 € there is a slightly positive potential of 13.25% for Adobe Inc. compared to the current price of 519.2 €.
