In the financial world, the emergence of AI tools poses a threat to existing software businesses. Shareholders worry about increased competition eroding profits. However, this threat may be overrated, creating an opportunity to invest in quality software stocks. Wix.com, a website development platform, is down 70% in the last year but has strong growth potential.

Wall Street has an average price target of $151 for Wix.com, which is currently trading at $72. The company’s revenue growth accelerated to 14% last quarter, showing that AI tools are not hindering its growth. Wix.com also acquired start-up Base44, expected to hit $50 million in annual recurring revenue by 2025.

Adobe, a software conglomerate, faces concerns about AI disruption, leading to a 45% drop in its stock price. However, the company continues to post record revenue and has potential for growth despite competition from other start-ups like Figma or Canva. Investors can buy Adobe shares at a low price.

While the rise of AI tools may make it easier to develop competing products, customers are unlikely to switch from trusted software providers like Wix or Adobe. These companies continue to offer valuable services, and the fear of AI disruption may be exaggerated. Investors should consider buying the dip on Adobe and Wix.com stocks.

Read more at Yahoo Finance: 2 Stocks With Massive Upside, According to Wall Street