Adobe on Monday announced a new service that allows businesses to create tailored generative AI models unique to their brand using their own media assets. Adobe stock rose on the news.
With Adobe AI Foundry, companies can make bespoke AI models trained on their entire catalogs of existing intellectual property. Adobe AI Foundry models can support all major asset types including images, video, audio and graphics.
The tailored AI models promise to be deeply tuned to a company's assets and IP-protected, Adobe said in a news release. The service will help creative teams scale on-brand content production, Adobe said.
Early Adobe AI Foundry customers include home improvement retailer Home Depot and Disney's Walt Disney Imagineering.
"We are always exploring innovative ways to enhance our customer experience and streamline our creative workflows," Molly Battin, chief marketing officer at Home Depot, said in a statement. "Adobe's AI Foundry represents an exciting step forward in embracing cutting-edge technologies to deepen customer engagement and deliver impactful content across our digital channels."
On the stock market today, Adobe stock advanced 3% to close at 343.40.
Adobe Stock Is A Laggard
"AI Foundry unites years of Adobe innovation and expertise — spanning our generative AI models and modalities — to help businesses solve today's most complex content and media production challenges," Hannah Elsakr, vice president of GenAI New Business Ventures at Adobe, said in a news release. "Our expert team and enterprise-grade bespoke models provide a secure creative foundation that enables companies to scale on-brand content and stay competitive in the attention economy."
Adobe stock has been knocked down on concerns that rivals with generative AI models, including Alphabet's Google and OpenAI, will erode its creative software business.
Year to date through Monday's close, Adobe stock had fallen nearly 23%. It has an IBD Relative Strength Rating of 14. That means it has been outperformed by 86% of stocks in the past 12 months.
Adobe ranks fifth out of six stocks in IBD's Computer Software-Desktop industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 56 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
