By Zacks Equity Research
Publication Date: 2026-03-31 09:26:00
Chicago, IL – March 31, 2026 – Today, Zacks Investment Ideas feature highlights Adobe’s ADBE and Microsoft MSFT.
Artificial intelligence expansion and innovations rocked software stocks in the first quarter of 2026. Wall Street is worried about rapid AI advancements and their long-term impacts on established software giants such as Adobe.
Meanwhile, investors have also, perhaps to less fanfare, sold off some of the AI hyperscalers to start 2026 as they worry their massive AI capex spending plans aren’t paying off quickly enough.
Microsoft, for instance, is down roughly 35% from its all-time highs as the market punishes it for huge AI data center spending and the potentially worrisome portion of its revenue backlog tied to its OpenAI partnership.
The selloffs might be overdone for both Adobe and Microsoft. Even if investors are unsure about how AI will disrupt their businesses in the long run, both ADBE and MSFT are established tech titans that are…
