Adobe (Nasdaq: ADBE) may be best known for their reader software and photo editing tools. Now, however, it is strengthening its position in the AI arms race by beefing up some of its artificial intelligence tools. The move wasn’t greeted with rapture, or exactly accolades, from investors who sent Adobe shares down slightly in Monday afternoon trading.
The new AI push Adobe has in mind is focused on the Firefly system and now includes video tools. Adobe first entered the AI arms race in his March. On his website at Firefly, the first round of suites of “generative AI” tools, a kind of AI that helps build things, has been published. This included a text-to-image system and a text effects system. Now, Adobe has stepped up its game with a suite of video tools that allow users to enhance colors with simple text commands. You can even add music and sound effects with these basic text prompts.
The new system is already a hit. Adobe pointed out that it already has hundreds of thousands of users. What’s more, it still has a lot of users coming thanks to a fairly robust waiting list after the rollout. We’re in the middle of the NAB Show right now, so Adobe can take advantage of these developments with excellent coverage.
Overall, analyst consensus calls Adobe a mid-range buy, but it’s based on a nearly perfect split decision. 11 purchase ratings and 13 pendingAdditionally, Adobe’s stock price has a sluggish 5.17% upside potential thanks to an average price target of $397.16 per share.
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