In this article, we will take a look at some of the best small-cap software infrastructure stocks. On July 2, Gartner’s Managing VP Analyst, George Brocklehurst, shared his views on how the enterprise software industry is facing pressure from AI-powered agents that challenge the conventional consumption and pricing mechanisms. Gartner also mentioned that around $234 billion in capital outlays on SaaS, estimated till 2030, is exposed to risk from agentic arbitrage.
He added that agentic AI reshapes software economics, which is expected to shift IT budgets towards results-driven services despite software investments forecasted to grow by approximately 12% by 2030. Brocklehurst stated that the shift poses a serious threat to vendors defending traditional SaaS dashboards and licensing models, but at the same time, it creates significant revenue potential for those developing innovative solutions.
Brocklehurst told Channel Dive that enterprise buyers are overwhelmed and they do not want to spend more on IT faster. Rather, they want to focus on better outcomes. Large volumes of enterprise software spending over the next several years will be redirected towards providers that offer agents trained around organizational data.
Gartner estimates that only a small proportion of agents currently on the market can meet the demands of business process automation.
With that background, let’s explore our 11 Small-Cap Software Infrastructure Stocks to Buy Now.
Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed software infrastructure companies with market capitalizations between $300 million and $2 billion. Also, we only shortlisted stocks with at least 10% upside potential per consensus as of July 2 closing. Finally, we selected 11 stocks with the highest upside and ranked them in ascending order.
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 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
11. Repay Holdings Corp. (NASDAQ:RPAY)
Repay Holdings Corp. (NASDAQ:RPAY) is one of the best 11 small-cap software infrastructure stocks to buy now.
On June 18, Repay Holdings Corp. (NASDAQ:RPAY) completed its first successful proof of concept, allowing the acceptance of Stablecoin payments via its platform. This represented a significant milestone in REPAY’s efforts to evaluate blockchain payment solutions for its enterprise clients and their end-users.
The proof of concept was a fully functional demonstration of a consumer-to-business transaction executed on the Stellar blockchain system. Consumers with a compatible digital wallet could initiate a transfer of USD Coin to a corresponding wallet belonging to a REPAY client. USD Coin is a fiat-backed, regulated stablecoin pegged to the U.S. Dollar at 1:1.
The demonstration was built around utilizing the company’s existing technology stack and provides an easy-to-use interface. When a consumer selected USD Coin as a payment method, details of the transaction were displayed, and upon review of the information, the consumer authorized payment using their internet-based browser wallet extension.
Upon confirmation of the transaction, both the Stellar and REPAY systems would reflect that the transaction has been completed, and funds will be available to the CLIENT’s wallet shortly thereafter.
Repay Holdings Corp. (NASDAQ:RPAY) is a payments technology company that provides integrated payment processing solutions to consumers and businesses. Some of the payment processing solutions it offers include debit and credit card processing, ACH processing, e-cash, digital wallet services, and virtual credit card processing.
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