Adobe's generative AI flywheel to continually evolve: Baird
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Baird is âincrementallyâ positive around Adobeâs (NASDAQ:ADBE) artificial intelligence strategy and leadership position.
Shares are up 3% on Wednesday.
âWe expect the product roadmap to continually evolve over time with additional GenAI announcements,â analysts Rob Oliver and Patrick Schulz wrote in a note following the companyâs investor day, held on Tuesday. The firm has a Neutral rating on the stock and a $540 price target.
Adobe announced more than 100 innovations across Creative Cloud as well as three new Firefly models, which are generative machine learning models used in design. 
The firm joins Citi in calling the event a modest positive, with the latter saying it spoke with customers at the conference who, while unhappy with price increases, seemed pleased with the new products. 
New Firefly generation 
Adobe (ADBE) introduced the Firefly models which include higher-quality image, greater resolution, a model for vector graphics (which are created directly from geometric shapes) and a model for template designs.
Audio, video and 3D capabilities are coming to future Firefly models, the company said.
Some 90% of Firefly web users are not current Adobe subscribers and the generate AI model has already generated more than three billion images, after crossing two billion a month ago, Baird said.
In additional AI-related news, Adobe said advancements for Document Cloud should be available in public beta later this year.
Other areas where Adobe (ADBE) is focused include an AI assistant for its Experience Cloud marketing product, greater leverage of AI in those apps and even more Gen AI-based solutions, such as GenStudio to simplify the content supply chain from creation-to-activation 

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