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13 Best Software Stocks to Buy Right Now

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In this article, we will take a look at the 13 Best Software Stocks to Buy Right Now.

The software industry is evolving at an unprecedented pace, with significant advancements in coding languages, structures, frameworks, methodologies, and other technologies. More specifically, the industry has benefited significantly from the increased demand for digital transformation. Until recently, the growth outlook appeared promising due to the increasing use of Software-as-a-Service (SaaS), which provides an adaptive and cost-effective distribution mechanism for apps.

In that sense, the global SaaS sector was estimated at over $3 trillion in 2022, capping a decade of rapid growth, with McKinsey forecasting that it might reach $10 trillion by 2030.

At the same time, disruption is being accelerated by AI’s rapid adoption. Industry sectors that heavily depend on services or entry-level positions are therefore under tremendous strain, closing coding boot programs and delaying the hiring of junior tech. This is further evidenced by reports stating that a growing number of Gen Z graduates are having trouble obtaining employment in a field that used to have fairly rapid hiring rates some years ago.

Our Methodology

To compile our list of the best software stocks to buy, we used the Finviz stock screener to look for U.S.-listed companies in the industry with strong fundamentals. We then ranked them according to the number of hedge funds that held stakes in them as of the second quarter of 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).

13. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 59

Cloudflare, Inc. (NYSE:NET) ranks among the best software stocks to buy right now. On August 29, following a meeting with Cloudflare’s CEO Matthew Prince at its 2025 Tech Executive Summit, Stifel reaffirmed its Buy rating and $230 price target for Cloudflare, Inc. (NYSE:NET). The firm expressed confidence in Cloudflare’s prospects across multiple focus areas and spoke with Prince about several subjects, including Act 4, Zero Trust, AI, and Cloudflare’s organizational maturity.

Stifel believes Cloudflare, Inc. (NYSE:NET) can grow by 25%-30%+ in the following years, while also expanding operating margin and free cash flow, thanks to its expanding portfolio and ongoing go-to-market enhancements.

For the upcoming years, the firm states that Cloudflare, Inc. (NYSE:NET) provides “the most upside optionality” in its coverage universe.

Cloudflare, Inc. (NYSE:NET) is a cloud-based cybersecurity and website management company that also offers routing and developer security solutions. It operates in numerous main categories, including Security Solutions, Performance Enhancement, Reliability, Zero Trust Infrastructure, and others.

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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.

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

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