Is Adobe's Stock Heading for $300?

Adobe's stock has fallen 24% year-to-date due to AI-related concerns, as AI chatbots threaten its core image creation software business. However, the stock has been rallying recently and trades at a discount (15x trailing earnings vs. S&P 500 average of 24x). Despite valid risks from potential demand erosion, the author believes Adobe's continued solid growth (11% revenue increase) and attractive valuation provide sufficient margin of safety for the stock to potentially finish the year above $300.