In this piece, we will discuss the 11 Best Software Stocks to Invest in According to Billionaires.

The broader software industry, long known for premium valuations, has recently been under investor scrutiny amid growing concerns that rapid advances in artificial intelligence (AI) may disrupt its competitive landscape.

As of March 10, 2026, the software application and software infrastructure industries have declined by over 20% and 50%, respectively, so far in 2026. Meanwhile, both industries have slipped 30% and 20%, respectively, in the last six months.

While this represents a sharp correction, market participants are seeing signs of stabilization.

According to Reuters, on March 10, 2026, Deutsche Bank claims that no major software company projects a negative revenue impact from AI this year. Furthermore, analysts at the firm believe the month-long rout tied to AI fears will likely end now. Accordingly, the firm upgraded the U.S. and European technology sector from “Underweight” to “Neutral,” while turning “Overweight” on software stocks.

In contrast, a Reuters report dated February 26, 2026, cited Goldman Sachs prime brokerage data to showcase that hedge funds were heavily betting that software and IT services stocks would fall, marking record short positions. This trend was seen despite the sector’s 4% weekly rebound.

Amid these challenges, the S&P 500 Software index has fallen 28% since late October. As a result, the U.S.-listed software companies are stepping up capital returns, announcing $70.50 billion in stock repurchase authorizations since January 12, 2026.

Against this backdrop of AI dominance and falling valuations, we will shed light on the best software stocks billionaires are betting on.

Methodology

To curate our list of the 11 best software stocks to invest in according to billionaires, we used online screeners to identify application and enterprise software companies. These stocks enjoy the confidence of analysts and elite hedge funds. Finally, we ranked our list in ascending order based on the number of billionaires bullish on each stock as of the end of the fourth quarter 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Note: Data extracted as of March 9, 2026.

11. Snowflake Inc. (NYSE:SNOW)

Snowflake Inc. (SNOW) is included in our list of the 11 best software stocks to invest in according to billionaires.

As of March 9, 2026, Snowflake Inc. (SNOW) retains confidence from 90% of the covering analysts, with the consensus price target ($240.00) implying a 31.26% upside potential. The sentiment holds even as the stock is down in line with the industry, having fallen roughly 17% since the start of 2026.

Amid industry headwinds tied to AI, the company’s latest quarter and fiscal 2026 performance helped bolster analyst confidence.

Analysts at Canaccord described the quarter as a strong one for the company. Specifically, the firm believes the performance in the quarter eliminated the lingering concerns surrounding the company’s product cycle and competitive positioning.

Accordingly, Canaccord trimmed its price target on Snowflake Inc. (SNOW) from $270 to $240, while reiterating a “Buy” rating.

Marking a 1-percentage-point growth acceleration, Snowflake Inc. (SNOW) recorded fourth-quarter growth of 30%. The growth came in 2.20% above the Street estimates. Looking ahead, management expects over 26% organic growth in FY27, while FCF margin is projected slightly below.

Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform that helps organizations store, manage, and share data across multiple public clouds. Its platform, called the Snowflake Data Cloud, supports diverse workloads including data engineering, analytics, machine learning, and secure collaboration.

10. Fair Isaac Corporation (NYSE:FICO)

Fair Isaac Corporation (NYSE:FICO) is one of the 11 best software stocks to invest in according to billionaires.

As of March 9, 2026, investor sentiment surrounding Fair Isaac Corporation remains cautious, as the software applications industry faces pressure amid AI-related concerns. In line with industry-wide performance, the stock has slid roughly 15% in 2026 so far.

Despite softness in investor confidence, analyst sentiment remains strong on Fair Isaac Corporation, with over 70% of covering analysts remaining bullish on the stock. The consensus price target of $1,922.00 reflects an upside potential of roughly 40%.

The company’s strong first-quarter results renewed analyst confidence in early February.

Analysts at Goldman Sachs cited the company’s revenue, margins, and EPS for the quarter, all of which surpassed analyst expectations. The firm highlighted the company’s 60% year-over-year growth in mortgage origination revenue driven by pricing, supporting management’s reaffirmation of full-year guidance.

Looking ahead, analysts at the investment bank expect further pricing increases to come in CY26, broader adoption of FICO 10T, and continued market share leadership. Accordingly, the firm projected 20%+ EPS growth, while reducing its price target on Fair Isaac Corporation (NYSE:FICO) from $2,070 to $1,777 and reiterating a “Buy” rating.

Fair Isaac Corporation (NYSE:FICO) is an analytics software company that provides credit scoring services and decision management solutions. Its business is divided into the following segments: Software and Scores.