5 Surprising ‘Strong Buy’ Tech Stocks That Also Could End Up Huge AI Winners
The massive market rally so far in 2023 has been driven largely by mega-cap technology companies that look like they will be the biggest winners in the artificial intelligence (AI) revolution. Companies like Nvidia have surged higher on the promise of generative AI, and while there is no question that the future is wide open, and the prospects are almost limitless, chasing the companies that have been the tailwind for the surge higher in the stock markets might not be the best plan now.
At 24/7 Wall St., we decided to screen our AI technology database looking for companies that may be overlooked in the revolution that continues to grow in intensity seemingly every day. Five top technology stocks, which are all rated Buy at leading Wall Street firms, may provide an outstanding way for aggressive growth investors to join in on the AI trade without chasing some of the companies that have had parabolic moves higher.
Investors should remember that no single analyst report should be used as a sole basis for any buying or selling decision.
Adobe
This large cap legacy technology giant is a sleeper in the AI world. Adobe Systems Inc. (NASDAQ: ADBE) operates as a diversified software company worldwide through the following three segments.
The Digital Media segment offers products, services and solutions that enable individuals, teams and enterprises to create, publish and promote content. Its Document Cloud is a unified cloud-based document services platform. The company’s flagship product is Creative Cloud, a subscription service that allows members to access its creative products. This segment serves content creators, workers, marketers, educators, enthusiasts, communicators and consumers.
The Digital Experience segment provides an integrated platform and set of applications and services that enable brands and businesses to create, manage, execute, measure, monetize and optimize customer experiences from analytics to commerce. This segment serves marketers, advertisers, agencies, publishers, merchandisers, merchants, web analysts, data scientists, developers and executives across the C-suite.
The Publishing and Advertising segment offers products and services, such as e-learning solutions, technical document publishing, web conferencing, document and forms platform, web application development and high-end printing, as well as Advertising Cloud offerings.
Adobe offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, software vendors and developers, retailers and original equipment manufacturers.
Earlier this year Adobe revealed generative AI services for creative professionals and marketers. In the suite, there is Adobe Firefly, a new family of creative generative AI models focused initially on image generation and text effects.
BMO Capital Markets has a $570 target price on Adobe Systems. The consensus target is $537.04, and shares closed trading on Thursday at $516.88.
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