ADBE

SAN JOSE, Calif.--(BUSINESS WIRE)--Adobe (Nasdaq: ADBE), the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms, and NVIDIA today announced an expansion of their partnership to optimize Adobe's flagship tools including Adobe Photoshop, Premiere, Substance 3D, Frame.io and Brand Concierge, delivering faster AI-powered creation, production and personalization. This work builds on Adobe and NVIDIA's strategic partnership.

Taiwan Semiconductor Manufacturing (TSM -3.40%) just booked its sixth straight quarter of record profit. The world's largest contract chipmaker builds the advanced processors most of the tech industry designs but doesn't make.

Adobe's stock has cratered 32% this year even as its AI revenue grows triple digits, leaving investors caught between a compelling valuation and a nagging question about whether the real threat to Creative Cloud has barely started.

Both Adobe and Salesforce beat earnings and both call AI a growth engine, yet one stock has shed nearly a third of its value this year while the other holds up.

Shares of Adobe (ADBE) declined on Monday after Wells Fargo downgraded the software company by two notches, citing concerns about deteriorating underlying growth, rising competition, and challenges in monetising artificial intelligence (AI). Wells Fargo lowered its rating on Adobe to Underweight from Equal Weight and cut its price target to $225 from $270.

Robert Hall and Michael Woodford have won the Nobel Economics Prize 2026 on Monday for "for microeconomic foundations of macroeconomic stabilization." Adobe (ADBE) downgraded to Underweight as competitive pressures intensify, while Tyler Technologies (TYL) upgraded to Overweight, with 2025 headwinds seen as transitory and potential reversion by 2027.

Enterprise software names are rallying, and Adobe (NASDAQ:ADBE | ADBE Price Prediction) is the notable exception after a fresh Wall Street downgrade. Adobe stock is down 4% to $233.50 this morning.

Adobe stock drops Monday after receiving a double downgrade from Wells Fargo, which cited worsening organic growth, executive instability, and a loss in pricing power.

Adobe keeps beating earnings estimates and raising guidance, yet the stock has cratered 30% this year while peers held up far better. One Bernstein analyst sees a massive mispricing that the rest of Wall Street is not ready to believe.

Adobe is rated Buy with a 12-month target of $294 and probability-weighted fair value of $274, citing undervalued growth. The current price implies ~3% annual revenue growth, while ADBE has delivered an average of 10.8% over the last four years. Management reiterated a 10.2% ARR growth target and raised full-year guidance, emphasizing a strategic focus on expanding the freemium funnel.