Adobe Inc. (ADBE) Faces Mixed Sentiment Amid AI Growth Opportunities

Coatue Management holds $236.24 million worth of shares in Adobe Inc. (NASDAQ:ADBE), representing 0.66% of its total 13F portfolio, helping the stock secure a place on our list of billionaire Philippe Laffont’s 10 stock picks with huge upside potential.

In October 2025, Adobe Inc. (NASDAQ:ADBE) experienced mixed sentiments, with investor optimism over its AI prospects contrasting with market-driven stock weakness.

Firstly, on October 3, 2025, TD Cowen conducted a meeting with Adobe Inc. (NASDAQ:ADBE)’s management during their Software Bus Tour. Following discussions, the investment firm highlighted steady seat growth, pricing challenges, and accelerating consumer AI adoption. However, TD Cowen noted that enterprise-level uptake may take longer to shape growth trajectories.

However, on October 15, 2025, Adobe Inc. (NASDAQ:ADBE)’s share price fell to a new 52-week low of $330.63. The stock has experienced a 33.57% decline over the past year, facing challenges and strong competition in the AI space, particularly from Google’s new image-editing tool. Still, the analysts believe the stock is significantly undervalued due to its strong fundamentals, including healthy revenue growth and a reasonable price-to-earnings ratio of 15.06, which indicates strong upside.

Through its Adobe Experience Cloud and Adobe Creative Cloud, Adobe Inc. (NASDAQ:ADBE) delivers digital media and marketing solutions. It is included in Philippe Laffont’s stock portfolio.

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.

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Disclosure: None.