Design software firm Autodesk joined the artificial intelligence craze this week with new generative AI functions across its product line. But macroeconomic concerns are weighing on ADSK stock ahead of its fiscal third-quarter earnings report next week.
At its Autodesk University conference in Las Vegas on Monday, the San Francisco-based company introduced Autodesk AI for its Design and Make Platform. Autodesk's Design and Make Platform consists of Autodesk Platform Services and three industry clouds: Forma, Fusion, and Flow.
The company says Autodesk AI provides intelligent assistance and generative capabilities to help designers with projects and improve workflows.
"Autodesk AI is the assistant that lowers the learning curve for designers and engineers, supercharges their productivity, and accelerates innovation," Chief Executive Andrew Anagnost said in a news release. "AI is the future of design and make, and Autodesk is pioneering this transition."
Autodesk AI automates repetitive tasks to minimize errors and free up time. The company also analyzes complex project data to offer predictive insights.
Autodesk makes software for the architecture, engineering, construction, product design, manufacturing, media and entertainment markets.
ADSK Stock Is A Recent Breakout
On Tuesday, ADSK stock broke out of a double-bottom base at a buy point of 215.44, according to IBD MarketSmith charts. The 5% chase zone runs to 226.21, based on IBD trading guidelines. However, if the breakout fails, the stop-loss sell zone starts at 200.36.
On the stock market today, ADSK stock dipped 0.6% to close at 216.11, but remained in the buy zone.
KeyBanc Capital Markets on Tuesday cut its price target on ADSK stock to 250 from 255 but kept its overweight rating. KeyBanc analyst Jason Celino said he is cautious on ADSK stock ahead of the company's earnings report, due late Tuesday.
Celino lowered his estimates for Autodesk's next fiscal year on indications of a softening macroeconomic climate.
Autodesk Ranks Sixth In Industry Group
Elsewhere on Wall Street, Oppenheimer analyst Ken Wong reiterated his outperform rating on ADSK stock with a price target of 250.
In a client note, Wong said he was encouraged by Autodesk's AI announcements at Autodesk University. The three-day conference ends Wednesday.
Also at Autodesk University, the company announced Autodesk Workshop XR, an immersive design review workspace connected to Autodesk Construction Cloud. The offering allows designers in the architecture, engineering, and construction industries to review projects in 3D using virtual reality headsets from Meta Platforms.
Autodesk ranks sixth out of 12 stocks in IBD's Computer Software-Design industry group, according to IBD Stock Checkup. ADSK stock has an IBD Composite Rating of 88 out of 99.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
