13 March 2025
If you are covering Adobe’s latest financial results or Intel appointing a new CEO, please find below a comment from Ben Barringer, global technology analyst at Quilter Cheviot:
Adobe
"Adobe delivered a decent set of numbers last night, with revenues beating expectations and growing by around 11%. However, the crucial thing with these sets of results is that Adobe is finally giving a bit more disclosure on artificial intelligence revenues and the impact that theme is having on the wider business. At the moment Adobe is generating $125m in revenues from AI related activities. On its own that is fine, and the business does expect that to double next year, however, for a company that generates north of $23bn in revenue, it remains pittance.
"The share price continues to derate, and much of that is due to the concerns around AI. The question around if Adobe is an AI winner or loser is continually asked, and given its market dominance and potential for disruption you would have to say it is more likely to be a loser. Furthermore, there is a large threat looming with the public listing of Canva, the design software company, and the buzz that is going to generate in that market. Adobe will ultimately go through a bumpy period while that happens and attention is switched to a potentially more exciting investment case.
"Despite the market sell off in tech in recent days, Adobe remains at a premium valuation compared to the wider market. There are much cleaner stories out there in the tech landscape despite market concerns, and thus Adobe may find itself plateauing for much of the near future."
Intel
"Intel surprisingly announced overnight that it has hired Lip-Bu Tan as its new CEO. This is a very interesting announcement and gives the company hope that it can be kept alive despite it continually losing market share to TSMC.
"Tan was the chief executive of Cadence, the semiconductor design software company, so knows the market inside out and is very experienced. He also, until last year, sat on the board of Intel but resigned due to the strategic direction of the company. It says a lot that the board has now brought him in to run the company, suggesting that it is looking for some sort of saviour. Tan is a highly respected individual, but he has his work cut out turning around the fortunes of Intel and making it competitive once again."
