AI’s Ascendant Star: Adobe Poised to Eclipse Nvidia by 2028

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Such headwinds make Nvidia’s forward P/E of 40 seem less a valuation and more a wager at Ascot. While the stock deserves its premium, expecting perpetual triple-digit growth is akin to believing in fairy tales-or British weather. A multiple contraction seems not merely likely, but deliciously inevitable.

Adobe: The Unlikely Heir Apparent

Enter Adobe (ADBE), currently wallowing at 40% below its 2024 peak-a discount so severe it might make a charity auction blush. The market, ever the alarmist, views generative AI as either a guillotine or a savior for the creative software behemoth. The reality, as usual, resides in the champagne coupes between these extremes.

Adobe’s Creative Cloud remains the industry standard with all the abandon resistance of a Victorian chaperone. Switching costs are so prohibitive they might require a forklift. While Firefly AI’s capabilities in image generation are impressive, its true genius lies in transforming casual users into loyalists-a digital Pied Piper with better margins.

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Management’s fiscal alchemy deserves mention: AI-driven revenue per user grows like ivy in May, while share buybacks shrink the float with the precision of a Swiss watch. At 17 times earnings, Adobe trades like a company expecting tragedy rather than triumph. How droll when reality proves otherwise.

Three years hence, when investors marvel at Adobe’s double-digit EPS growth and Nvidia’s humbled multiple, they’ll recall this moment with the clarity reserved for all obvious-in-hindsight epiphanies. Until then, one might as well enjoy the theatre. 🎭

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2025-08-24 22:26