(Reuters) -Adobe shares fell 12% on Friday as a lackluster quarterly forecast bolstered issues about rising competitors for the corporate’s inventive suite together with Photoshop and upset traders hoping for a lift from AI integration.The corporate expects about $440 million in web new annual recurring income for the digital media phase, which homes its cloud merchandise for paperwork and inventive functions. Final yr, the unit had reported $470 million.”Adobe has loved a excessive aggressive moat over its company historical past and we predict that AI has considerably eroded many of those aggressive obstacles and see aggressive pressures constructing over time,” HSBC analysts stated in a be aware.Synthetic-intelligence startups equivalent to Stability AI and Midjourney want to problem Adobe’s years-long grip of the graphics business.General income forecast was additionally beneath estimates, with Adobe CEO Shantanu Narayen saying “expectations have been maybe just a little larger … by way of what we’d information for Q2″.If losses maintain, the corporate will shed greater than $30 billion in market worth. Its shares have fallen about 4% this yr, after leaping 77% in 2023.”Combined messages are exhausting to interpret,” Piper Sandler analysts stated, including Adobe was nonetheless within the early phases of monetizing AI throughout its primary platforms.Adobe additionally introduced a $25 billion inventory buyback on Thursday, months after shelving its $20 billion deal for cloud-based designer platform Figma on account of regulatory roadblocks.Adobe’s inventory trades at 30.41 instances its ahead revenue estimates, in contrast with 32.87 for Microsoft and 30.42 for Salesforce.(Reporting by Akash Sriram in Bengaluru; Enhancing by Maju Samuel and Sriraj Kalluvila)