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.
Photo by Gabriel Benois on Unsplash
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.
9. Salesforce, Inc. (NYSE:CRM)
Salesforce, Inc. (NYSE:CRM) is included in our list of the 11 best software stocks to invest in according to billionaires.
Amid rising AI concerns, software application stocks have seen a challenging start to the year, recording a 15% decline as of March 9, 2026. At the same time, Salesforce, Inc. (NYSE:CRM) is experiencing similar pressure on its shares, witnessing a 25% decline so far in 2026.
Against this backdrop, analysts remain strongly confident in the stock. Over 75% of covering analysts remain bullish on the stock, with their consensus price target ($257.50) reflecting a roughly 30% upside potential as of March 9, 2026.
All recent analyst commentaries largely reflected the company’s latest quarterly results.
Some analysts, such as DA Davidson, highlighted that Salesforce, Inc. (NYSE:CRM)’s performance in the quarter failed to provide early indicators to support the company’s top-line reacceleration narrative. Analysts covering the stock were looking for such signals. Furthermore, analysts at the firm cautioned that continued weakness in marketing and commerce offset the strength in sales, service, and Agentforce.
While analysts at DA Davidson (February 27, Neutral) trimmed the firm’s price target on Salesforce, Inc. (NYSE:CRM) from $235 to $200, Citi’s (March 2, Neutral) analysts raised the price target to $200 from $197 following the company’s earnings release.
Similarly, other analysts, including Mizuho (February 26, Outperform) and BMO Capital (February 26, Outperform), viewed the company’s fourth quarter results as mixed.
Yet Mizuho’s analysts expect Salesforce, Inc. (NYSE:CRM) to show improved performance in 2026. At the same time, BMO Capital cited the company’s miss of January-quarter constant-currency organic revenue growth targets.
Mizuho reduced the target on Salesforce, Inc. (NYSE:CRM) from $280 to $265. On the other hand, BMO Capital cut its price target on the stock from $235 to $225.
Analysts at BMO Capital Markets further say that Salesforce, Inc. (NYSE:CRM)’s shares will remain range-bound in the short term.
Salesforce Inc. (NYSE:CRM) is a global enterprise software company that provides customer relationship management (CRM) and cloud-based business applications across sales, service, marketing, commerce, and data analytics. Its Customer 360 platform, powered by data tools and trusted AI, enables organizations to unify customer data and drive personalized engagement.
8. Shopify Inc. (NASDAQ:SHOP)
Shopify Inc. (NASDAQ:SHOP) is one of the 11 best software stocks to invest in according to billionaires.
On March 9, 2026, Shopify Inc. (NASDAQ:SHOP) received analyst confidence following OpenAI’s decision not to proceed with its plans to enable users to complete purchases directly inside ChatGPT.
Analysts at Jefferies revisited the stock following the decision, viewing the ChatGPT-maker’s decision as a reflection of Shopify Inc.’s (NASDAQ:SHOP) competitive position within the agentic commerce ecosystem and expressing confidence in the company’s e-commerce infrastructure.
With the company’s robust platform and continued investment in AI, the firm believes Shopify Inc. (NASDAQ:SHOP) is well-positioned within the agentic commerce setting and could become the go-to agent-enablement toolkit for merchants.
Raising the firm’s price target on Shopify Inc. (NASDAQ:SHOP) from $125 to $150, analysts at Jefferies reiterated a “Hold” rating.
Meanwhile, the company’s strong recent accelerating growth drew attention from analysts at Truist amid softness in the software industry. The firm remains confident in the company’s ability to materially benefit from agentic commerce and to expand its market share beyond the 14%+ share of U.S. e-commerce going forward. Accordingly, the firm views the recent plunge in the software group’s valuation as an attractive buying point for long-term investors.
In mid-February 2026, Truist upgraded Shopify Inc. (NASDAQ:SHOP) from “Hold” to “Buy” and raised its price target from $110 to $150.
7. Autodesk, Inc. (NASDAQ:ADSK)
Autodesk, Inc. (NASDAQ:ADSK) is included in our list of the 11 best software stocks to invest in according to billionaires.
Autodesk, Inc. (NASDAQ:ADSK) participated in the Morgan Stanley Technology, Media & Telecom Conference on March 4, 2026.
At the conference, the company’s CFO, Janesh Moorjani, reflected on its strong fiscal fourth quarter, during which it showed resilience in the face of macroeconomic uncertainty. While discussing the company’s ongoing efforts to restructure operations to sustain momentum, the firm cited management confidence following better-than-expected performance across billings, revenue, margins, and free cash flow. The company’s performance demonstrated continued expansion, alongside an increase in customer numbers.
Meanwhile, Autodesk, Inc. (NASDAQ:ADSK) continues to expand its Construction Cloud and Fusion platforms to cover the full lifecycle of physical assets. At the same time, the company remains on track to deepen its cloud and AI capabilities, with management noting that the long-term demand outlook is bolstered by factors such as construction digitization, manufacturing modernization, and global infrastructure investment.
Under its restructuring plans, Autodesk, Inc. (NASDAQ:ADSK) is targeting a 7% workforce reduction. With this, the company aims to use the savings to accelerate its efforts in artificial intelligence and research and development.
Bringing restructuring efficiencies and operating leverage into play, Autodesk, Inc. (NASDAQ:ADSK) expects to achieve an additional 75 basis-point margin expansion. The company already made a 200 basis-point improvement in fiscal 2026.
Autodesk, Inc. (NASDAQ:ADSK) designs software and related services, known for products such as AutoCAD, BIM Collaborate Pro, Revit, Civil 3D, Fusion 360, InfraWorks, Inventor, Maya, PlanGrid, Shotgun, and 3ds Max.
6. Roper Technologies, Inc. (NASDAQ:ROP)
Roper Technologies, Inc. (NASDAQ:ROP) is one of the 11 best software stocks to invest in according to billionaires.
As of March 4, 2026, the company’s strategy centers on disciplined acquisitions and the expansion of AI capabilities, according to management. With this, Roper Technologies, Inc. (NASDAQ:ROP) aims to sustain long-term cash flow growth. Looking ahead, management hopes to achieve mid-teens growth in free cash flow per share with this strategy.
On March 4, 2026, Roper Technologies, Inc. (NASDAQ:ROP) participated in the Morgan Stanley Technology, Media & Telecom Conference.
Emphasizing artificial intelligence, management expressed confidence, citing the technology as a key growth driver. Roper Technologies, Inc. (NASDAQ:ROP) saw an improvement in customer retention and a reduction in therapist attrition from 85% to 40% at CentralReach, thanks to AI-powered tools. With over 25 generative AI initiatives underway across its software portfolio, the company continues to monetize AI increasingly through subscription models with overage pricing.
Management also discussed its capital allocation strategy, which Roper Technologies, Inc. (NASDAQ:ROP) reinforced by repurchasing $1.80 billion in shares over the past five months. At the same time, the firm also deployed $3.30 billion on M&A in 2025, expecting 5%-6% organic growth in 2026. This year, the company hopes to accelerate its tuck-in and early-stage platform acquisitions.
Additionally, management discussed its 2025 results, in which Roper Technologies, Inc. (NASDAQ:ROP) recorded 12% revenue growth to $7.90 billion, alongside adjusted EBITDA growth of 11% to $3.14 billion. The company achieved this despite a lack of strong organic growth amid challenges at some units, including Deltek, ProCare, and Neptune.
Roper Technologies, Inc. (NASDAQ:ROP), a diversified technology company, delivers engineered products and software solutions for niche markets. The company serves industries ranging from healthcare and education to logistics and engineering.
5. Intuit Inc. (NASDAQ:INTU)
Intuit Inc. (NASDAQ:INTU) is one of the 11 best software stocks to invest in according to billionaires.
Following the company’s earnings release on February 26, 2026, investors recalibrated their expectations, as Intuit Inc. (NASDAQ:INTU) management’s expectations for Q3 profit are lower than those of Wall Street. After the results, the stock declined 4% in extended trading, drawing attention from analysts at Goldman Sachs.
Analysts at Goldman Sachs remain confident in the company’s efforts to leverage AI for better customer outcomes. On February 27, 2026, Goldman Sachs reiterated a “Neutral” rating and a $519.00 price target.
In the last six months, Intuit Inc. (NASDAQ:INTU) saw a roughly 30% decline in its share price, in line with its peers. Yet the company reported second-quarter revenue at 2.6% and an operating margin approximately 250 basis points above the consensus estimate.
While Intuit Inc. (NASDAQ:INTU) kept its fiscal 2026 guidance unchanged, its third-quarter earnings-per-share guidance fell short of the consensus estimate by 4%.
At the same time, management’s revenue guidance met street expectations. Management’s confidence in its revenue outlook stems from its Global Business Solutions segment, where the company recorded a 24% growth in its QuickBooks Online Accounting sub-segment and an 18% growth in its Online Services sub-segment.
Intuit Inc. (NASDAQ:INTU) focuses on providing business and financial management solutions. The company serves individuals and small businesses for tax preparation and filing purposes.
4. Adobe Inc. (NASDAQ:ADBE)
Adobe Inc. (NASDAQ:ADBE) is included in our list of the 11 best software stocks to invest in according to billionaires.
Adobe Inc. (NASDAQ:ADBE) continues to strengthen its position in large-scale sports fan engagement, building on past deployment of its enterprise tools to unify data and content.
On March 9, 2026, Adobe Inc. (NASDAQ:ADBE) announced that it is expanding its multi-year partnership with Major League Baseball on a larger scale. According to the deal, Adobe will leverage its tools to power next-generation digital fan experiences across MLB’s marketing, product, and content operations. Additionally, the company will act as the official presenting sponsor of MLB Opening Day for this year as well as the next two years. With this, Adobe will enable clubs to deliver AI-powered personalized experiences and creative fan expression across digital channels.
Meanwhile, Adobe Inc. (NASDAQ:ADBE) is expected to report its earnings on March 12, 2026. In anticipation of the earnings release, the company’s Total Annual Revenue and updates on Generative AI ARR, including early consumption trends and tiered pricing performance, remain in the spotlight, as analysts at RBC Capital describe these metrics as central to the debate surrounding Adobe’s growth trajectory.
Adobe Inc. (NASDAQ:ADBE) is a global technology company that focuses on digital media and marketing solutions. It offers tools for creating, publishing, and promoting content, as well as managing documents. It also operates a platform that allows businesses to measure and monetize customer experiences based on marketing, advertising, and analytics.
3. MongoDB, Inc. (NASDAQ:MDB)
MongoDB, Inc. (NASDAQ:MDB) is one of the 11 best software stocks to invest in according to billionaires.
Following the company’s earnings release, analysts at Scotiabank think that much of the overexcitement about the stock has settled, creating an attractive buying opportunity at the current reset level. Even in a worst-case scenario, the firm projects over 23% revenue upside in fiscal 2027.
Accordingly, analysts at Scotiabank upgraded MongoDB, Inc. (NASDAQ:MDB) from “Sector Perform” to “Outperform” and raised the price target from $275 to $310 on March 5, 2026.
In the fourth quarter, MongoDB, Inc. (NASDAQ:MDB) recorded a 29% revenue growth in its Atlas Business, which remains a key beneficiary of growing AI adoption. However, growth slightly slowed down compared to the 30% growth in the previous quarter.
Meanwhile, MongoDB, Inc. (NASDAQ:MDB) expects Q1 profit to come in below estimates, having already shown slower quarterly revenue growth for its cloud database product Atlas. Following this, on March 3, 2026, Reuters reported that the company’s shares fell 27% to a six-month low.
Analysts at UBS remain uncertain about the deceleration in the business growth, as management provided no explanation for the softer performance.
At the same time, analysts at Barclays commented, “Q4 was more mixed with a slightly lower Atlas beat level and below consensus FY27 guidance. Some of this could well be conservatism, but in this tape, investors don’t have a lot of patience.”
Analysts remain uncertain about the trajectory of Atlas amid industry-wide AI-related headwinds.
MongoDB, Inc. (NASDAQ:MDB) focuses on developing and providing a general-purpose database platform, while also offering professional consulting and training services. Its products include MongoDB Enterprise Advanced, MongoDB Atlas, and Community Server.
2. Uber Technologies, Inc. (NYSE:UBER)
Uber Technologies, Inc. (NYSE:UBER) is included in our list of the 11 best software stocks to invest in according to billionaires.
Uber Technologies, Inc. (NYSE:UBER) is currently operating in a challenging environment, with the software applications industry facing intense pressure.
Uber Technologies, Inc. (NYSE:UBER) is currently operating in a challenging environment, where the software applications industry faces pressure amid AI-related concerns. As of March 9, 2026, the industry has declined roughly 15% so far in 2026, while the stock has performed slightly better than its peers, sliding just under 10% over the same period.
Amid this, analyst sentiment remains strong for Uber, with over 80% of covering analysts remaining bullish on the stock. The consensus price target of $105.00 reflects an upside potential of over 40%.
Regarding the company’s fourth-quarter results, analysts at Guggenheim shed light on updated segment-level profit and buyback expectations, as well as several contractions consistent with the broader tech sector. To incorporate these updates, the firm trimmed its price target on Uber Technologies, Inc. (NYSE:UBER) from $135 to $125, while reiterating a “Buy” rating.
Meanwhile, Uber Technologies, Inc. (NYSE:UBER) managed to retain Susquehanna’s confidence with its Q4 results. The firm’s analysts reiterated Susquehanna’s “Positive” rating on the stock, describing the quarter as solid. The firm cited better-than-expected performance across most vital areas.
For the fourth quarter, revenue of $14.40 billion beat analyst expectations, but earnings per share of $0.71 fell short of the $0.80 consensus.
Uber Technologies, Inc. (NYSE:UBER), a leading supplier of ride-hailing, food delivery, and freight services, revolutionizes urban transportation by connecting drivers and passengers through its mobile app.
1. Microsoft Corporation (NASDAQ:MSFT)
Microsoft Corporation (NASDAQ:MSFT) is included in our list of the 11 best software stocks to invest in according to billionaires.
Anthropic’s technology is now being integrated into Microsoft’s Copilot ecosystem, according to Reuters.
According to a Reuters report dated March 9, 2026, Microsoft Corporation (NASDAQ:MSFT) will now enable the automation of complex workplace tasks with its new tool, Copilot Cowork, based on Anthropic’s viral Claude Cowork offering.
Claude Cowork helps build apps, generate spreadsheets, and organize large datasets with minimal human oversight. This powerful tool has already raised doubts among investors about AI agents potentially disrupting traditional software businesses.
Microsoft Corporation (NASDAQ:MSFT) also highlighted that part of M365 Copilot and existing OpenAI GPT models will be powered by Anthropic’s Claude Sonnet models. The company will initially test Copilot Cowork with early-access users in March, while some usage will be included in the existing $30-per-user-per-month Microsoft 365 Copilot subscription. Meanwhile, additional capacity of the tool will be made available upon additional payment.
With this move, Microsoft Corporation (NASDAQ:MSFT) aims to diversify its AI model stack. Additionally, the company addresses debates about its heavy reliance on OpenAI for its cloud business by diversifying through a deepened partnership with Anthropic.
Microsoft Corporation (NASDAQ:MSFT) is a global technology company that develops and sells a wide range of software, cloud services, devices, and business solutions, serving both individual users and enterprise customers worldwide. Its flagship products include Windows, Microsoft 365, Azure, LinkedIn, and Xbox.
While we acknowledge the potential of MSFT 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 MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.
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