Strategist Warns Against Intel and Xerox After Adobe’s 30% Five-Year Decline
The strategist highlighted that Adobe delivered a negative 30% cumulative return over five years while its CEO collected $220 million, and advised avoiding companies like Intel and Xerox that missed pivotal software transitions. She recommended pivoting into integrated AI infrastructure names such as Broadcom, Nvidia, AMD and cybersecurity leader CrowdStrike.
1. Underperforming Returns and Executive Payouts
The strategist pointed out that Adobe’s stock underperformed the S&P 500 with a negative 30% cumulative return over the past five years while its CEO earned $220 million during that period. She grouped Intel and Xerox with similar firms that failed to capitalize on software transitions and advised investors to steer clear of “dip” purchases in these names.
2. Shift to AI Infrastructure and Cybersecurity
To capture future gains, she recommended reallocating into integrated AI infrastructure suppliers—Broadcom, Nvidia and AMD—which have outpaced peers over three to five years. She also suggested adding to cybersecurity leader CrowdStrike, expecting margin expansion and more consistent earnings growth in that sector.