Jim Cramer Notes Uptick In Adobe Stock, Says Generative AI Can't Be Underestimated

Prominent market commentator Jim Cramer reportedly told investors they should not underestimate the transformative power of generative artificial intelligence while explaining why Adobe Inc ADBE stock soared on Thursday.

Cramer's comments come in the wake of Adobe shares closing about 5% higher on Thursday. The market expert pointed out that the company's software — Firefly — can be used well with supercomputers that are at the heart of the AI revolution. Cramer said Firefly alone could save huge amounts of time and money and said such a groundbreaking innovation should not be discounted just because the market is not sure of the specifics, according to a CNBC report.

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He also referred to Nvidia Corporation NVDA CEO Jensen Huang's Computex speech in Taiwan where he said AI will have the most significant impact on the business of making factories.

"So, what's it worth? Again, we're not able to calculate it, darn it," Cramer said. "However, if you remove the largest amount of friction from the biggest industry in the world, you could see a real GDP impact, that's not nonsense."

Scale: AI-driven optimism has pushed major Wall Street indices higher in recent times. Stocks like Nvidia, Advanced Micro Devices, Inc. AMD and Taiwan Semiconductor Mfg. Co. Ltd. TSM have made significant gains this year.

Cramer also pointed out one should take into account the potential scale of the technology. "Here's the bottom line: when you consider the scale of the business-to-business opportunity, you can see why AI might be worth far more than most people realize, even if it's too early to calculate the exact numbers," he said.

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