Adobe ( ADBE Quick Quote ADBE - Free Report) has been making strong efforts to bolster its generative AI efforts in order to deliver enhanced experiences to customers on the back of advanced solutions. This is evident from the latest commercial release of its family of creative generative AI models — Firefly. Adobe Firefly supports text prompts in over 100 languages, helps creators make several changes to their content, creates endless variations seamlessly and bolsters image generation capabilities. It delivers a better experience to the creators through the generation of AI technology combined with Creative Cloud apps, Express and Experience Cloud. The latest release includes a new Firefly web application, a playground for exploring AI-assisted creative expression and Firefly integrated into Photoshop, Illustrator and Express workflows. It also includes Adobe GenStudio, which addresses Enterprise content supply chain needs by powering content ideation, creation, production and activation with generative AI. Digital Media Segment in Focus
The latest move has bolstered the company’s Creative Cloud offerings, which, in turn, is likely to aid the Digital Media segment’s performance in the days ahead.
In second-quarter fiscal 2023, the segment generated revenues of $3.59 billion, which improved 11% on a year-over-year basis. Creative Cloud generated $2.91 billion in revenues, up 11% year over year. Creative ARR was $11.97 billion. For fourth-quarter fiscal 2023, Adobe expects Digital Media revenues between $3.67 billion and $3.70 billion. Net new annualized recurring revenues (ARR) in the Digital Media segment is projected at $520 million. Strengthening the Digital Media segment will likely continue to contribute well to the overall performance of this Zacks Rank #2 (Buy) company in the near term. This, in turn, will instill investor optimism in the stock. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here For fourth-quarter fiscal 2023, Adobe projects total revenues between $4.975 billion and $5.025 billion. The Zacks Consensus Estimate for the same is pegged at $4.98 billion, reflecting year-over-year growth of 10.2%. Competitive Scenario
We note that not only Adobe but also companies like
Amazon ( AMZN Quick Quote AMZN - Free Report) , Alphabet’s ( GOOGL Quick Quote GOOGL - Free Report) Google and Microsoft ( MSFT Quick Quote MSFT - Free Report) are making concerted efforts toward bolstering presence in the booming generative AI space. Per a Grand View Research report, the market is likely to hit $109.4 billion by 2030, witnessing a CAGR of 34.6% between 2022 and 2030. Microsoft’s integration of OpenAI’s next-generation LLM — GPT-4 — into its search engine Bing and browser Edge to deliver a ChatGPT-like experience to users remains a major positive. Microsoft Azure offers Azure OpenAI Service, which enables the seamless application of Large Language Models (LLM) and generative AI techniques in various use cases. Meanwhile, Amazon’s cloud computing arm, Amazon Web Services (AWS), offers an AI-powered solution — Amazon Bedrock, which helps accelerate the deployment of generative AI-backed foundation models. The introduction of a language model called Amazon Titan remains noteworthy. Recently, the company also introduced the AWS Generative AI Innovation Center program, which helps connect customers across the world with AWS’ AI and machine learning experts to aid them in building and deploying generative AI solutions seamlessly. On the other hand, Google, which forayed at the beginning of this year by unveiling its chatbot Bard, recently rolled out consulting services to bolster generative AI efforts. The new offerings include advice and tools through which Google Cloud strives to aid clients in adopting generative AI techniques. These tools are designed to help customers boost automation in their business operations by generating content and summarizing information with the power of AI.