- Today
- Holidays
- Birthdays
- Reminders
- Cities
- Atlanta
- Austin
- Baltimore
- Berwyn
- Beverly Hills
- Birmingham
- Boston
- Brooklyn
- Buffalo
- Charlotte
- Chicago
- Cincinnati
- Cleveland
- Columbus
- Dallas
- Denver
- Detroit
- Fort Worth
- Houston
- Indianapolis
- Knoxville
- Las Vegas
- Los Angeles
- Louisville
- Madison
- Memphis
- Miami
- Milwaukee
- Minneapolis
- Nashville
- New Orleans
- New York
- Omaha
- Orlando
- Philadelphia
- Phoenix
- Pittsburgh
- Portland
- Raleigh
- Richmond
- Rutherford
- Sacramento
- Salt Lake City
- San Antonio
- San Diego
- San Francisco
- San Jose
- Seattle
- Tampa
- Tucson
- Washington
Tech Giants Adobe and Microsoft Offer Compelling Value Amid AI Disruption
Wall Street's AI fears have pushed these software leaders to their lowest valuations in years, creating buying opportunities.
Mar. 31, 2026 at 4:21pm
Got story updates? Submit your updates here. ›
As AI disrupts the software industry, the heavy machinery and technological infrastructure powering tech giants like Adobe and Microsoft remain vital to their long-term success.Chicago TodayThe article highlights Adobe (ADBE) and Microsoft (MSFT) as two top tech stocks to consider buying now, as their share prices have fallen significantly due to investor concerns over the impact of artificial intelligence on their businesses. Despite the market's AI-fueled selloff, both companies are projected to deliver strong revenue and earnings growth in the coming years, and their stocks are trading at attractive valuations not seen in over a decade.
Why it matters
As AI continues to disrupt the software industry, investors are grappling with the long-term implications for established tech giants like Adobe and Microsoft. However, the article argues that the selloff in these stocks may be overdone, presenting savvy investors with an opportunity to buy high-quality companies at discounted prices.
The details
Adobe's industry-leading creative software has seen its growth cool somewhat due to increased competition from AI-powered upstarts, but the company has responded by integrating AI capabilities into its own products. Despite this, Adobe has continued to deliver impressive financial results, with revenue growing nearly 11% on average between 2022 and 2025, and earnings per share expanding by 35% last year. Meanwhile, Microsoft has faced investor concerns over its heavy spending on AI data centers and the potential impact on its software business, leading to a 35% decline from its October 2025 highs. However, the company has been actively rolling out its own AI features and remains a technology juggernaut, with revenue and earnings projected to grow by double digits in the coming years.
- Adobe grew its revenue by an average of 16-25% per year from 2015 to 2021.
- Adobe's growth has cooled since then, but it still averaged nearly 11% sales growth between 2022 and 2025.
- Microsoft is down roughly 35% from its October 2025 peaks.
The players
Adobe
An industry-leading provider of creative software, known for its wide-ranging, best-in-class subscription-based offerings used by everyone from Hollywood movie studios to college students.
Microsoft
A technology royalty and one of the Magnificent 7 stocks, Microsoft has transformed into a juggernaut, with its software and cloud services becoming nearly ubiquitous.
What they’re saying
“We are only at the beginning phases of AI diffusion, and already Microsoft has built an AI business that is larger than some of our biggest franchises.”
— Satya Nadella, CEO
The takeaway
Despite the market's concerns about the impact of AI on their businesses, Adobe and Microsoft remain well-positioned tech giants with strong growth prospects and attractive valuations, making them compelling investment opportunities for long-term investors willing to weather the current market volatility.
