Adobe (NASDAQ:ADBE) might best be known for its reader software and its photo-editing tools. Now, however, it’s stepped up its position in the AI arms race by augmenting some of its artificial intelligence tools. The move wasn’t exactly greeted with wild acclaim—or any acclaim—by investors, who sent Adobe stock down fractionally in Monday afternoon’s trading.
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The new AI push Adobe has in mind is focused on its Firefly systems and will now include video tools. Adobe took its first shot in the AI arms race back in March when the Firefly website saw a first-round suite of “generative AI” tools, the kind of AI that helps make things. That included text-to-image and text effects systems. Now, Adobe’s stepping up its game with a set of video tools allowing users to generate color enhancements via simple text commands. Music and sound effects can also be added via those basic text prompts.
The new systems are already something of a hit. Adobe noted that there are already user counts measuring in the hundreds of thousands. Plus, there are plenty of users yet to come, thanks to a wait list that’s still fairly robust even after the rollout. Better yet, the timing of this development is second to none; we’re currently in the middle of the NAB Show, so Adobe can capitalize on these developments with some excellent press coverage.
Overall, analyst consensus calls Adobe a Moderate Buy, but it does so on a nearly perfect split decision of 11 Buy ratings and 13 Holds. In addition, Adobe shares offer a sluggish 5.17% upside potential thanks to their average price target of $397.16 per share.
