15 Software Stocks With the Highest Upside Potential

1. Strategy Inc. (NASDAQ:MSTR)

Potential Upside: 157.88%

Number of Hedge Fund Holders: 43

During the previous week, Strategy Inc. (NASDAQ:MSTR) reported adding $1.25 billion worth of Bitcoin to its holdings. The company now holds a total of 687,410 Bitcoins. These investments in cryptocurrency often draw scrutiny, with Morgan Stanley Capital International (MSCI) previously contemplating whether a company with more than 50% of its assets in cryptocurrencies should be excluded from the index.

However, in a positive development, on January 7, MSCI announced it would not remove digital-asset treasury companies from its indexes. Following the announcement, the company’s shares rose 6.6% in after-hours trading.

However, MSCI plans to conduct a broader review of the treatment of non-operating companies in general. The company notes that its indexes are designed “to measure the performance of operating companies and exclude entities whose primary activities are investment-oriented in nature.”

The index provider commented:

”MSCI has determined at this time not to implement the proposal to exclude digital asset treasury companies from the MSCI Global Investable Market Indexes as part of the February 2026 Index Review.”

The company is currently listed in the MSCI USA, Nasdaq 100, and MSCI World indexes. JPMorgan analysts had previously cautioned that delisting the stock from MSCI’s equity indices could result in billions of dollars in outflows.

Previously, financial services firm Citi lowered its price target for the shares from $485 to $325 on December 21, 2025. Despite cutting the price target, Citi analyst Peter Christensen reaffirmed a Buy rating on the stock. His downward-adjusted price target suggests a further 105.74% upside from the current levels as of January 8.

Strategy Inc. (NASDAQ:MSTR) is a bitcoin treasury company across the Middle East, Europe, the United States, Africa, and globally. The Company also provides cloud-native, AI-powered enterprise analytics software to global customers.

While we acknowledge the potential of MSTR as an investment, 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 MSTR and that has 100x upside potential, check out our report about this cheapest AI stock.

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