Markets

Insider Trading

Hedge Funds

Retirement

Opinion

10 Software Stocks Analysts Are Upgrading

Page 1 of 10

In this article, we will discuss the 10 Software Stocks Analysts Are Upgrading.

According to JPMorgan, the software sector remains a critical one for US venture investors, capturing ~60% of venture dollars in 2024, thanks to its scalability and high margins. Amidst subdued IPO activity since 2021, mergers and acquisitions have become a key exit strategy for startups. US-based companies dominated the broader M&A landscape, led by goals such as enhancing product offerings as well as expansion of market reach.

Current Trends in the Software Industry

As per JPMorgan, the valuation multiples for numerous public software companies have witnessed a decline from their peak in 2021. Due to the elevated interest rate environment, difficult geopolitical landscape, and sideways stock market performance, several public software companies have pivoted their focus on operational efficiency and profitability. They have moved away from growth.

The shift is evidenced by converging trajectories of EBITDA margins and growth rates in revenue. The concurrent decline in revenue multiples demonstrates the importance of high growth in a bid to justify elevated valuations. However, Ideal Market Research believes that the acceleration of digital transformation continues to amplify demand for software testing services, with companies scaling cloud-native applications, mobile-first platforms, and AI-driven solutions.

Amidst such trends, we will now have a look at the 10 Software Stocks Analysts Are Upgrading.

A close-up of a server running a cloud-native platform, symbolizing the power of the software-as-a-service (SaaS) business area.

Our Methodology

To list the 10 Software Stocks Analysts Are Upgrading, we sifted through several online rankings to get an extensive list of stocks that have been upgraded by Wall Street analysts recently. Next, we chose the ones that are popular among hedge funds. Finally, the stocks have been arranged in ascending order of their hedge fund sentiments, as of Q1 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10 Software Stocks Analysts Are Upgrading

10. SAP SE (NYSE:SAP)

Number of Hedge Fund Holders: 33

SAP SE (NYSE:SAP) is one of the 10 software stocks analysts are upgrading. On June 13, research firm Warburg Research upped the price objective on the company’s stock from €275 to €295, while maintaining a “Buy” rating. The firm’s analyst, Andreas Wolf, sees further cloud growth and margin improvements, which led to the increase in long-term estimates. Furthermore, the analyst opines that AI is expected to fuel growth further and make software development more efficient.

In Q1 2025, SAP SE (NYSE:SAP)’s current cloud backlog expanded 29% at constant currencies and the total revenue encountered a double-digit increase. With a share of more predictable revenue of 86%, the business model is resilient in uncertain times. Furthermore, SAP SE (NYSE:SAP)’s AI-powered portfolio allows companies to navigate supply chain disruptions in more than 130 countries. In Q1 2025, the company’s cloud and software revenue rose 14% to €7.94 billion, and was up 13% at constant currencies.

In January 2024, SAP SE (NYSE:SAP) announced a company-wide restructuring program, which was concluded in Q1 2025. The restructuring payouts came in at €2.5 billion for FY 2024 and €0.3 billion for Q1 2025. Furthermore, ~€0.4 billion is anticipated to be paid out in the balance of 2025.

SAP SE (NYSE:SAP) offers enterprise applications and business solutions.

Page 1 of 10

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee:  If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!