Adobe Grapples with Slowing Growth and Investor Doubts Amid Rising AI Competition for Creative Software Dominance

Adobe and Apple face investor skepticism amid the booming artificial intelligence (AI) sector. While both tech giants remain profitable, analysts doubt their ability to keep pace with faster-moving AI competitors. Adobe, once a leader in creative software, is struggling as AI can now generate images from text. Forecasts indicate a modest 9.3% revenue growth for its upcoming fiscal results, marking its slowest annual growth in over a decade, with a stock decline of over 20% this year. Meanwhile, Apple’s sentiment has hit a five-year low, receiving two downgrades this week. Only 55% of analysts rate it a “buy,” despite a recent 30% recovery since April. Analysts criticize Apple for lackluster product innovations and weak performance in China, urging the need for significant AI advancements to revitalize growth. In contrast, companies like Microsoft and Nvidia thrive, showcasing the importance of rapid AI investment for future success.

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