Several companies are making significant moves in the AI sector. Adobe's stock experienced a decline due to investor concerns about the timeline for realizing profits from its AI integrations, despite an increased revenue forecast for 2025. Qualcomm is set to compete with Broadcom in the AI chip market, acquiring Alphawave Semi to bolster its data center capabilities and partnering with HUMAIN to build AI data centers in Saudi Arabia. Zhihu's stock is considered undervalued, with potential for growth as it shifts towards launching new AI products. Microsoft is favored over Palantir by some analysts for AI stock investment due to its integration of AI across existing products, which has contributed to revenue growth. Elon Musk's xAI is expected to receive $250 million in investments, valuing the company at $113 billion. Apple's stock remains steady as analysts view WWDC25 as a transition year with minimal announcements. Experts suggest AI could potentially help address the U.S. deficit by boosting economic growth and tax revenues. Additionally, Zacks Investment Research recommends five AI-focused mid-cap stocks—UiPath Inc, Five9 Inc, Fastly Inc, Calix Inc, and Confluent Inc—as promising investments.
Key Takeaways
- Adobe's stock fell due to investor worries about the time it will take to profit from AI, overshadowing a raised revenue forecast.
- Qualcomm is entering the AI chip market to compete with Broadcom, acquiring Alphawave Semi and partnering with HUMAIN.
- Zhihu's stock is undervalued with potential for growth as it transitions to launching new AI products.
- Microsoft is favored over Palantir as an AI stock investment due to its broad AI integration and revenue growth.
- Elon Musk's xAI is set to receive $250 million in investments, valuing the company at $113 billion.
- Apple's stock is steady as WWDC25 is viewed as a transition year.
- AI is being considered as a potential solution to the U.S. deficit problem through economic growth and increased tax revenues.
- Zacks Investment Research recommends UiPath Inc, Five9 Inc, Fastly Inc, Calix Inc, and Confluent Inc as AI-focused mid-cap stocks to buy.
- Adobe plans to add AI models from OpenAI and Google to its Firefly tool.
- Qualcomm is developing a custom AI chip platform using its Oryon CPU and Hexagon NPU processors.
Adobe stock drops as AI adoption worries investors
Adobe's stock fell because investors are concerned that it will take longer for the company to make money from using AI in its software. This concern overshadowed Adobe's increased revenue forecast for 2025. Analysts at CFRA Research noted increasing worries about competition and the time it will take to profit from AI. Adobe plans to add AI models from OpenAI and Google to its Firefly tool, which helps users create images and videos. Adobe now expects revenue between $23.50 billion and $23.60 billion for 2025.
Adobe stock falls on AI adoption concerns
Adobe's stock price went down because investors are worried the company's use of AI in its software might take longer to produce profits. This overshadowed Adobe's increased forecast for yearly revenue. Alex Cohen reports.
Adobe stock declines amid AI profit doubts
Adobe's stock dropped as much as 7% because of worries about when the company will start making more money from its new AI features. This happened even though Adobe raised its annual revenue forecast. An analyst from CFRA Research said there are increasing concerns about competition and the time it will take to profit from AI. Adobe's Firefly tool lets users create and edit images and videos using simple text prompts. At least five brokerages lowered their price target on Adobe's stock.
Adobe shares fall as investors question AI returns
Adobe's shares fell 7% because investors are worried that the company's use of AI in its software might take longer to generate profits. This overshadowed a raised annual revenue forecast. Angelo Zino from CFRA Research mentioned increasing concerns about competition and the timeline for AI monetization. Adobe plans to add AI models from OpenAI and Google to its Firefly tool, which allows users to create and edit images and videos. Adobe now expects revenue between $23.50 billion and $23.60 billion.
Qualcomm aims to rival Broadcom in AI chips
Qualcomm wants to compete with Broadcom in the AI chip market. Broadcom is a leader in custom AI processors. Qualcomm is buying Alphawave Semi for $2.4 billion to help its expansion into data centers. Qualcomm is developing a custom AI chip platform using its Oryon CPU and Hexagon NPU processors. Qualcomm is partnering with HUMAIN to build AI data centers in Saudi Arabia.
Zhihu stock undervalued with AI growth potential
Zhihu's stock is trading at a low price compared to its cash and assets, even though it's now making a profit. The company is shifting from using AI to improve operations to launching new AI products. If Zhihu's AI plans succeed, it could become a major internet platform. The company is buying back its own shares, and a special dividend is possible.
Analyst favors Microsoft over Palantir for AI stock
Mizuho analyst Gregg Moskowitz prefers Microsoft over Palantir as an AI stock investment. Palantir's stock has greatly increased since the release of its AIP platform. AIP helps businesses use AI in their operations. Microsoft is integrating AI across its existing products, like Office and Azure. Azure's revenue increased by 33%, contributing to Microsoft's overall revenue growth.
Elon Musk's xAI to receive $250M investment
Elon Musk's AI company, xAI, is set to receive about $250 million in investments from firms like TPG, ARK Invest, and Sequoia Capital. Current and former xAI employees can sell shares to these investors through a tender offer. This deal values xAI at $113 billion. Fidelity plans to purchase $20 million worth of shares. xAI developed the chatbot Grok, which competes with OpenAI’s ChatGPT.
Dell Technologies named top AI play
...
Apple stock steady amid AI transition
Apple's stock is holding steady as analysts view WWDC25 as a transition year. Evercore ISI analyst Amit Daryanani reiterated an 'Outperform' rating with a $250.00 price target on Apple Inc. Analysts noted the keynote matched expectations of a transition year with minimal announcements.
Can AI fix the deficit problem
The U.S. deficit has been a major topic in financial news. The government's debt is like a household's savings. When the government borrows money, it puts it back into the economy. Some experts believe that AI could help solve the deficit problem by boosting economic growth and tax revenues. The Federal Reserve might also lower interest rates, which would reduce the cost of the national debt.
5 AI stocks to boost your portfolio
The internet software industry is growing because companies are spending more on IT for hybrid work environments. Mobile devices are popular, so businesses are investing in web-based infrastructure and security software. Zacks Investment Research suggests buying five mid-cap stocks focused on artificial intelligence. These stocks are UiPath Inc, Five9 Inc, Fastly Inc, Calix Inc, and Confluent Inc. Each of these stocks has a Zacks Rank #2 (Buy).
Sources
- Adobe shares slide as investors skeptical of quicker AI-adoption returns
- Adobe shares fall, investors skeptical of quicker AI-adoption returns
- Adobe shares fall, investors skeptical of quicker AI-adoption returns
- Adobe shares slide as investors skeptical of quicker AI-adoption returns
- This Incredibly Cheap Artificial Intelligence (AI) Chip Stock Wants to Become the Next Broadcom
- Zhihu: A High-Quality Company Trading At Half Its Cash Balance - With Hidden AI Upside
- Palantir or Microsoft: Gregg Moskowitz Picks His Top AI Stock Bet
- Elon Musk’s xAI Is Getting $250 Million in Investments From TPG, Sequoia and Others
- MSN | Personalized News, Top Headlines, Live Updates and more
- Apple (AAPL) Stock Holds Steady as Analysts Call WWDC25 a ‘Transition Year’
- The Deficit Narrative May Find Its Cure In Artificial Intelligence
- Buy 5 AI-Focused Mid-Cap Internet Software Stocks for a Solid Portfolio