11 Hot Software Stocks to Buy Now

8. Unity Software Inc. (NYSE:U)

6-Month Share Price Gain: 58.03%  

Number of Hedge Fund Holders: 52

Unity Software Inc. (NYSE:U) is included in our list of the 11 Hot Software Stocks to Buy Now.

On August 6, 2025, Unity Software Inc. (NYSE:U) reported results for Q2 2025. While the company slightly missed earnings expectations, it reported revenue that exceeded guidance by $16 million. Meanwhile, adjusted EBITDA reached $90 million, exceeding expectations by $15 million.

Unity Software Inc. (NYSE:U)’s partnerships with Tencent, Scopely, Nintendo, and major automakers helped the company expand its footprint beyond the gaming sector. The Vector segment resulted in a 15% sequential growth for Unity Ads, offsetting softness in other ad products. Meanwhile, the Create segment experienced a double-digit subscription growth, thanks to the rapid adoption of Unity 6.2. The company reported EPS of negative $0.26, compared to negative $0.25 expected.

Following the earnings release, on August 7, Morgan Stanley raised its price target from $25 to $40, maintaining an ‘Overweight’ rating. The investment firm also increased FY26 and FY27 EBITDA forecasts by 8% and 19%, respectively.

Unity Software Inc. (NYSE:U) serves gaming, entertainment, and various other industries worldwide with its real-time 3D content creation platform. It is included in our list of the hot stocks to buy.