Adobe has been included in the July preferred list of Nomura. Gregg Moskowitz, an analyst at Nomura, believes that Wall Street underestimates the breadth of Adobe's artificial intelligence monetization, which should become more apparent in the second half of 2024. "We still believe that Adobe will eventually exceed its recently raised target of $1.95 billion in net new recurring revenue for fiscal year 2025 for digital media," the analyst said. However, the analyst added that many also regard Adobe as a "loser in artificial intelligence".
According to Futu Securities, Adobe (ADBE.US) has been included in the preferred list of Nomura for July. Nomura analyst Gregg Moskowitz believes that Wall Street underestimates the breadth of Adobe's artificial intelligence monetization, which should become more apparent in the second half of 2024. "We still believe that Adobe will eventually exceed its recently raised target of $1.95 billion in net new recurring revenue for fiscal year 2025 for digital media," the analyst said. However, the analyst added that many also regard Adobe as a "loser in artificial intelligence".
Meanwhile, Nomura's other top picks in the technology sector are:
Amazon (AMZN.US), based on its AWS data warehousing and solution ecosystem as well as its market strategy in generative artificial intelligence;
Trip.com (TCOM.US), which will benefit from consumers' shift from consumption to services, and the continued recovery of outbound tourism from China;
PayPal (PYPL.US), with its convincing valuation and attractive risk, its new Fastlane checkout solution and stable brand checkout trend are seen as encouraging signs;
Globant (GLOB.US), seen as a leader in artificial intelligence services, with a competitive positioning, will continue to gain share in next-generation generative AI, machine learning, and data analytics technologies.
In addition, according to Nomura's data, as the artificial intelligence computing market grows fivefold over the next three years, Nvidia (NVDA.US) is expected to maintain more than 60% market share. Nomura also noted that Oracle (ORCL.US) has been attracting attention for its Oracle Cloud Infrastructure (OCI), with investors still not fully appreciating it from a price and performance standpoint.