The stock market rose sharply on Thursday. NASDAQ Composite (^IXIC 1.02%) After noon, it was up more than 1%. Despite lingering concerns about policymakers’ reaction to economic conditions and interest rates, investors appear ready to declare the bear market over and return to a headlong bullish mood.
Artificial intelligence (AI) is a key trend driving the market, and the Nasdaq has a lot of AI stocks.Notably, he said the two companies have made AI a big part of their future business models, and that on Thursday, both companies Adobe (ADBE 4.95%) and Nvidia (NVDA 2.76%) It made huge profits and added to the frenzy surrounding the trend.
Adobe releases AI tools
Adobe shares rose 5% early Thursday afternoon. The creative software specialist company aims to be at the forefront of his AI revolution in content creation, announcing a number of new innovations to help clients get more from artificial intelligence. Did.
Adobe’s conference for the Europe, Middle East and Africa region kicked off in London on Thursday and the company announced a lot of news. Adobe said it would offer its Firefly-generated AI package as part of the Adobe Express all-in-one app, hoping to make AI a more integral part of wider content creation. The new content supply chain solution also incorporates generative AI capabilities to help brands with high-volume needs meet them as efficiently as possible while keeping overall costs down. And on the marketing side, Sensei GenAI services help marketing teams and other clients focused on customer experience stay productive.
Adobe’s stock also benefited from a series of price target hikes by analysts who reacted positively to the news. The price target, previously in the $415-430 range, was raised to $460-500, with many analysts pointing directly to the company’s attempts to incorporate generative AI capabilities as a key driver of long-term growth. are doing.
While many industries will undoubtedly face disruption from the rise of artificial intelligence, the ability to create content at scale is one of the most obvious. This puts Adobe in a great position to be the first to adopt his AI as part of its business model, and shareholders are now very fond of the idea.
Nvidia expands investment in AI
Nvidia’s stock jumped more than 3%, making its 2023 performance even more astonishing. The semiconductor giant has made a name for itself by driving AI innovation across the tech industry, but it’s also pouring money into helping other companies adopt artificial intelligence. to the test.
Cohere, a privately held company specializing in AI-based models, has announced a successful funding round. Cohere has raised $270 million, including Nvidia, which helped back the round.
This news is important because Cohere is looking to provide an alternative to OpenAI. microsoft (MSFT 0.58%) has adopted AI partnerships at its core. Big companies like Nvidia don’t necessarily want to lock themselves into the frameworks defined by Microsoft to take advantage of opportunities in the AI space, especially early development.
Some argue that Nvidia stock has broken the $1 trillion market cap so many times that it went too far and too soon. But when AI gets as big as many believe, Nvidia could achieve a lot more in the next few years.
Dan Caplinger holds a position at Microsoft. The Motley Fool has positions at and endorses Adobe, Microsoft, and he Nvidia. The Motley Fool recommends options for Adobe’s January 2024 $420 long call and Adobe’s January 2024 $430 short call. The Motley Fool has a disclosure policy.
