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Home Technology peripherals AI The 'leader” in AI applications emerges: Adobe!

The 'leader” in AI applications emerges: Adobe!

Oct 14, 2023 pm 08:21 PM
adobe ai application

Powerful artificial intelligence capabilities will revive growth prospects, which may make Adobe's performance cash in!

At this week’s Adobe MAX annual creative conference, software technology giant Adobe announced a series of new AI tools and services and said in discussions with analysts that the fourth fiscal quarter will be a very strong quarter.

Specifically, Adobe demonstrated the AI ??video editing technology Project Fast Fill. Users only need to enter text prompts to delete, add objects or change background elements in a few seconds, reducing a lot of trivial work. . In addition, Adobe has launched three new generative artificial intelligence models, and its image editing functions have been fully upgraded. The newly released Firefly Vector brings together Adobe’s vector graphics and generative AI expertise and is the world’s first generative AI model for vector graphics.

Analysts cheered these features, with Jefferies analyst Brent Thill praising "this is the fastest pace of innovation we have seen in 20 years"; Wolfe Research analyst Alex Zukin said in a report to clients that Adobe is taking the entire The product line has been transformed into AI-native products; Bernstein’s Mark Moerdler pointed out that Adobe’s AI tools can allow users to “save hours of repetitive and menial work.”

Adobe’s software, such as Photoshop and Lightroom, has always been an essential tool in the daily work of many creatives. With the rise of generative artificial intelligence, Adobe has been continuously developing and optimizing the artificial intelligence capabilities of its software and is at the forefront of implementing artificial intelligence business models. Since the beginning of this year, Adobe's stock price has risen by more than 62%, surpassing artificial intelligence leaders such as Microsoft

The leader” in AI applications emerges: Adobe!

Adobe will meet the moment of performance realization?

Unlike other technology companies, Adobe's artificial intelligence vision focuses more on practical applications that are likely to be popular with users. The key now is to attract enough customers to buy while also maintaining Adobe's high profit margins, which are among the highest in the software industry

Despite the hype that has fueled tech stocks this year, generative AI remains a largely unproven business concept. Aside from chipmakers like Nvidia providing the necessary components for these services, AI itself has yet to have a significant financial impact. Microsoft told investors on its last earnings call that the performance contribution from artificial intelligence services such as its Copilot chatbot would be "incremental," with the impact mainly concentrated in the second half of the fiscal year.

Adobe said its fourth-quarter results to be announced in December will include forecasts for the next fiscal year, which should reflect to some extent the expected performance of new AI services. Wall Street currently expects revenue growth of about 12%, 2 percentage points higher than this year's forecast.

Analysts predict that Adobe’s adjusted operating margin will remain above 45% despite the high cost of artificial intelligence services. Adobe Chief Financial Officer Daniel Durn said on Tuesday that he expects to achieve stable and sustained operating margins during this investment cycle

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