Cold reception in the artificial intelligence boom! Adobe (ADBE.US) CEO claims that stock price is severely undervalued.

Adobe CEO Shantanu Narayen said that the company is being undervalued by the market due to Wall Street's excessive focus on chips and AI training infrastructure. Narayen, in an interview before the company's annual product launch, stated, "There is a misconception in the market about the entire software industry, and I believe this misjudgment is especially apparent when we look at our own profitability and growth prospects." He added that the market focus will eventually shift towards AI delivery within applications, which is where Adobe excels. As a leader in the creative software field, Adobe's market value has fallen by about 20% this year, as investors worry that competitors (such as Canva) may be more effective in leveraging AI technology advances. Other business software developers like Salesforce, Inc. also face industry disruption pressure from AI-native startups. Narayen and other executives will demonstrate at the annual conference in Los Angeles this week that Adobe remains a cornerstone in creative software. On Tuesday, Adobe released a new version of the image generation model Firefly, which ensures commercial application security by avoiding intellectual property infringement and inappropriate content. The new version of Firefly will support automatic photo editing through natural language commands. The company also announced that users can now call upon third-party models such as OpenAI, Alphabet Inc. Class C, and ElevenLabs in flagship applications like Photoshop. Narayen noted that customers often use third-party models for creative ideation rather than final output, and emphasized that Adobe will continue to invest in proprietary model research and development. Adobe's AI strategy focuses on deep integration of artificial intelligence into specific scenarios of industry-standard applications, such as intelligent replacement and extension of image elements in Photoshop. The new features launched on Tuesday also include AI-generated music and speech. As of September, their AI models have generated over 29 billion pieces of digital content. Narayen admitted that while Wall Street recognizes Adobe's AI innovation capabilities, investors are more concerned about the commercial returns. As users continue to adopt AI features in their applications, the company will eventually benefit. He reiterated his confidence in the company's long-term stock performance, stating that their current $9 billion stock buyback plan is based on the belief that the company's value is currently underestimated: "The company's current value is clearly undervalued, which is why we are aggressively buying back stock."