TCW Concentrated Large Cap Growth Fund Sold Adobe Systems (ADBE) Due to Increasing Competition

In its third-quarter 2025 capitalist letter, TCW Concentrated Large Cap Growth Fund highlighted stocks specified arsenic Adobe Inc. (NASDAQ:ADBE). Adobe Inc. (NASDAQ:ADBE) is simply a exertion institution that operates done Digital Media, Digital Experience, and Publishing and Advertising. The one-month instrumentality of Adobe Inc. (NASDAQ:ADBE) was 11.17%, and its shares mislaid 21.20% of their worth implicit the past 52 weeks. On December 24, 2025, Adobe Inc. (NASDAQ:ADBE) banal closed astatine $352.98 per share, with a marketplace capitalization of $149.734 billion.

TCW Concentrated Large Cap Growth Fund stated the pursuing regarding Adobe Inc. (NASDAQ:ADBE) successful its 3rd 4th 2025 capitalist letter:

"Adobe Inc. (NASDAQ:ADBE) (ADBE; Information Technology) – Adobe develops and sells bundle and services for contented instauration and the measurement of integer advertizing and marketing. When we archetypal purchased shares astir a decennary ago, we were attracted to Adobe’s competitory presumption successful originative software, ample installed base, and charismatic borderline and escaped currency travel profile. Adobe was a palmy concern for galore years but we person been trimming the presumption for the past respective years arsenic the concern matured and their maturation complaint decelerated. More recently, Gen AI (a secular inclination to which we are firmly levered) has go an important origin representing a paradigm displacement that we judge volition disrupt galore industries, including representation and video editing tools. We judge 3rd enactment open-source AI tools arsenic good arsenic expanding contention endanger ADBE’s pricing powerfulness and spot growth, perchance further decelerating the maturation rate. We truthful decided to exit our remaining presumption to money much charismatic ideas."

Adobe Inc. (NASDAQ:ADBE) is successful the 13th presumption connected our database of 30 Most Popular Stocks Among Hedge Funds. According to our database, 88 hedge money portfolios held Adobe Inc. (NASDAQ:ADBE) astatine the extremity of the 3rd quarter, compared to 104 successful the erstwhile quarter.  For the fiscal twelvemonth 2025, Adobe Inc. (NASDAQ:ADBE) reported revenue of $23.77 billion, representing a 11% year-over-year growth. While we admit the imaginable of Adobe Inc. (NASDAQ:ADBE) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.