Adobe’s AI-Powered Creative Tools Overlooked as Stock Trades at a Discount, Say Analysts

Adobe’s AI-Enhanced Creative Tools: Market Undervaluation and What It Means for Creatives

Adobe Inc. (NASDAQ: ADBE) has seen its stock dip by roughly 23% this year, placing it among the weaker large-cap tech stocks. This decline followed its Q2 earnings and a third-quarter forecast that fell short of market expectations. Many point to rising competition from newer AI-driven platforms like Canva and Midjourney as the cause of this slowdown.

However, some analysts argue that the market is undervaluing Adobe’s real strength. Gil Luria of DA Davidson highlighted in a June interview that labeling Adobe as an “AI loser” misses the point. While AI can automate content creation, Adobe’s core value lies in its comprehensive tools for collaboration, editing, and publishing — essential for creative professionals.

Why Adobe’s AI Strategy Matters for Creatives

Adobe is integrating generative AI directly into its Creative Suite, enhancing key features for image and video creation. This integration is designed to boost productivity without replacing the creative control users value. Additionally, Adobe supports the use of third-party AI models from leaders like OpenAI, MidJourney, and Google, allowing creatives to access a broader AI toolkit within familiar workflows.

This approach positions Adobe to benefit from AI adoption while maintaining its competitive edge. The combination of Adobe’s established tools and AI enhancements offers creatives improved efficiency and flexibility, rather than an all-or-nothing shift to automated content generation.

Investor Confidence Reflects Adobe’s Solid Fundamentals

Portfolio managers at Diamond Hill Capital echoed this positive outlook in their Q2 2025 investor letter. They view Adobe’s wide-ranging product lineup and recent AI integrations as strong pillars for sustained growth. Despite market concerns about competition and AI disruption, these factors appear already priced into Adobe’s current valuation. Seeing the stock trading below intrinsic value, they initiated positions during the quarter.

What This Means for Creative Professionals

• Enhanced Workflows: Adobe’s AI features aim to assist with tasks like image editing and video effects, allowing creatives to focus on their vision instead of repetitive work.
• Collaboration Tools: Improved AI-driven collaboration options make it easier to coordinate projects within teams, streamlining communication and feedback.
• Access to Third-Party AI: Integration with external AI models expands creative possibilities, giving professionals more tools without switching platforms.

For creatives invested in Adobe’s ecosystem, these developments suggest that the company remains a strong partner in content creation. The AI enhancements are built to complement, not replace, the creative process.

While Adobe’s stock may not currently be the top choice for those seeking explosive AI growth opportunities, its steady innovation provides real practical value for professionals who rely on its tools daily.

Interested in learning how AI tools can further improve your creative workflow? Explore relevant courses and training on Complete AI Training’s creative courses to stay ahead in your craft.