Adobe keeps growing and is buying back shares like CRAZY. Is AI the end for the company?

Adobe has been on my watchlist like literally forever. It just always looked too expensive for me. Until a little over a year ago. Now it's around $240 and I keep coming back to it.

Revenue went from $7.30B to $25.20B over the last 9 years. Gross margin is 89.4%, the highest it's been in that whole stretch. Ironically, right :P? And there are about 20% fewer shares than 9 years ago (of which 16% in the last 5 years), so every share owns a bigger slice than it used to.

I ran a quick DCF on it last month with 9% growth for five years, 5% for the five after that, 2.5% terminal growth and an 8% discount rate. That gave me about $513 a share. I know I know, way to ambitious. And I agree even though that was the CAGR for the past year.

Even the conservative case (5% and then 3%) came out around $402. Or even better. 2% forever would give a price of $345

I know the worry is AI tools eating into Creative Cloud. What I can't tell yet is whether that's showing up in the numbers or only in the price. I know many are convinced that AI will completely wipe out any software business. The numbers aren't agreeing to that, at least not yet.

What would you need to see before calling it a value trap?