10 Best Software Stocks to Buy in 2026

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​6. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 96

Palantir Technologies Inc. (NASDAQ:PLTR) is one of our Best Software Stocks to Buy in 2026. Recently, on July 2, DA Davidson upgraded Palantir Technologies Inc. (NASDAQ:PLTR) from Neutral to Buy and also raised the price target from $165 to $175.

​The firm noted that the company has grown into its valuation, due to profits rising sharply and the stock multiple compressing. This has created what analysts call a timely buying opportunity. DA Davidson highlighted that the company holds several competitive advantages over its peers and noted that AI is only making these advantages more prominent.

​A key point that the firm highlighted in its research note is Palantir’s ability to swap out the AI models underneath its platform. DA Davidson sees this as removing the biggest perceived threat to the business, which is the fear that customers would bypass Palantir and go directly to AI labs like Anthropic or OpenAI. The firm believes that the flexibility positions the company as a layer that customers use to orchestrate AI models generally.

Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that develops and deploys data integration and analytics platforms for government agencies, defense organizations, and enterprise clients. Its notable products include Palantir Gotham, Foundry, and Apollo.

While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Software Stocks to Buy in 2026

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