Adobe Inc. (NASDAQ:ADBE) is a trending AI stock on Wall Street. Stifel reduced its price target to $450.00 ahead of the fiscal Q4 results on December 10. The firm sees Adobe as a central hub for generative AI, but mixed signals prompt a hold rating from TD Cowen analyst J. Derrick Wood.

Despite AI competition, Adobe is positioning itself as a key player in generative AI. The firm believes AI adoption will benefit Adobe in the long run. However, foggy catalysts and potential disruption in creative departments have tempered analyst optimism, leading to a hold rating on the stock.

Analysts are cautious about Adobe’s future growth due to AI competition and slowing growth into 2026. While Adobe’s valuation is attractive, there is uncertainty about AI’s impact on the company’s business model. This mixed outlook has led to a hold rating until more clarity is achieved.

Investors looking for AI stocks with greater upside potential and less downside risk may want to explore options beyond Adobe. While Adobe is a strong player in the digital marketing and media solutions space, other AI stocks may offer more promising returns. For those seeking undervalued AI stocks with potential to benefit from current market trends, further research is recommended.

Read more at Yahoo Finance: Adobe’s (ADBE) Turnaround Story Gains Shape, but Stifel Still Sees Uncertainty