The first phase of the AI rollout was centered around generative AI. This is simply a prompt that users could provide questions to, and receive information from a database. Now, AI is already rapidly improving.
One major change is the rise of better prompting. These tools can allow creative workers to generate images, and even videos from a prompt, far beyond the level of a text response. It’s also a strong sign for some companies.
One big winner that we’ve noted before is Adobe (ADBE).
Investors were originally skeptical that Adobe could benefit from AI. But the company’s push for AI integration in its software is starting to pay off.
Adobe just beat on earnings, and raised their guidance for the year.
Adobe shares are now in the green over the past 12 months, and likely has more upside ahead, as well as a chance to further expand on its 24% profit margin.
Action to take: With shares breaking higher, investors may like Adobe at current levels, and should keep an eye out to buy more on any of the market’s inevitable pullbacks. At present, Adobe does not pay a dividend.
For traders, the September $550 calls, last trading for about $25.50, could see even further gains in the months ahead as the bullish breakout continues.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.