Author: admin

Adobe Inc. (NASDAQ:ADBE) is one of the  AI Stocks in the Spotlight This Week. On October 30, Barclays analyst Saket Kalia reiterated an Overweight rating on the stock with a $465.00 price target.

The firm sees AI momentum and ARR growth as key value drivers for the company despite accounting shift concerns.

Barclays highlighted three key takeaways from Adobe’s MAX user conference and analyst Q&A. One of these takeaways is how the company is striving to be a “one stop shop” for creative design by bringing in outside models.

Despite broader concerns about the impacts of generative AI, the company is experiencing growth in seats/content creation.

Pixabay/Public Domain

Adobe is also transitioning toward a Total ARR reporting/guidance framework, which is a concern that may be met with scepticism. However, analysts believe that continued double digit growth will serve as a real value driver for the company.

Finally, Adobe’s conversational experiences may increase costs initially, the analysts noted. However, they will likely decrease opex spend used for training over time.

“Three key takeaways from Adobe’s MAX user conference and analyst Q&A: (1) ADBE’s strategy for AI is to aggregate third party models for the customer to use Adobe as the ‘one-stop-shop’ for creative design, and it sounds like the company is seeing ‘unambiguous’ growth in seats/content creation despite the fear of headwinds from Gen AI; (2) Adobe will be moving to a Total ARR reporting/guidance framework, which marks the second change in as many years for financial disclosure and will likely be met with skepticism, but we think that it is more important that the customer groupings should continue to grow double digits, which is the real driver of value for the company; and (3) we discuss the conversational experiences Adobe announced at the opening keynote and that while third-party inferencing may drive costs higher, this should alleviate some opex spend used for training.”

Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.

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 Analysts Are Watching Closely and 11 Must-Watch AI Stocks on Wall Street

Disclosure: None.

QUALCOMM Incorporated (NASDAQ:QCOM) is one of the AI Stocks in the Spotlight This Week. On October 28, Citi raised the firm’s price target on the stock to $175 from $170 and kept a Neutral rating on the shares.

The rating follows QCOM’s announcement of two products for artificial intelligence, along with a deal with Saudi Arabia’s startup Humain.

The company unveiled two artificial intelligence chips for data centers, on October 27, which will be available next year. The two new chips, known as AI200 and AI250, are designed for improved memory capacity and running AI applications, or inference.

Meanwhile, the deal with Humain will allow QCOM to supply Humain with up to 200 megawatts of capacity. This deal, the firm believes, represents a $1.0B in sales and 25c earnings per share opportunity for the company.

Discussing the two developments, the firm stated how QCOM’s recent rally has been due to a short squeeze but is doubtful whether the company will be successful in AI considering how it is “several years behind” AMD (AMD) and Nvidia (NVDA).

QUALCOMM Incorporated (NASDAQ:QCOM) develops wireless technologies, supplies chips for mobile, automotive, and IoT, licenses patents, and invests in emerging tech.

While we acknowledge the potential of QCOM 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 Analysts Are Watching Closely and 11 Must-Watch AI Stocks on Wall Street

Disclosure: None.