We recently compiled a list of the 15 Software Infrastructure Stocks Outperforming In 2025. In this article, we are going to take a look at where GitLab Inc. (NASDAQ:GTLB) stands against the other software infrastructure stocks.
Software stocks had a troubling end to the last year and some even continued to fall during January. After a solid year, profit-taking would have been acceptable. However, the continuous decline in January had investors worried, with some media personalities calling it the end of software stocks.
It didn’t take the market long to change its views though. In general, software stocks are not as negatively impacted by tariffs as hardware stocks. Since Trump took over, people have been evaluating their options and with tariffs on the horizon, found software to be a relatively safe sector.
There were some concerns on the AI front as well. The emergence of DeepSeek AI has meant that companies in the US may not be willing to spend more on their AI ventures. Similarly, businesses could simply use DeepSeek’s much cheaper technology, causing downward pressure on subscription prices for instance. So far, none of this looks like becoming a reality, so on the back of solid earnings, most software stocks have comfortably outperformed the market.
We decided to take a look at the top 15 stocks that are outperforming the market so far this year. To come up with our list of 15 software infrastructure stocks outperforming in 2025, we only considered stocks with a market cap of at least 2 billion that were outpacing the broader market till the end of last week.
A team of software engineers working together in an open office, developing innovative solutions.
GitLab Inc. (NASDAQ:GTLB)
GitLab Inc. is a software developer for the software development lifecycle that provides GitLab, a DevOps platform; and related professional & training services. It helps businesses to design, build, secure, and implement software to enhance productivity. The stock is up 25% this year.
GitLab offers a unique AI play. It is essentially a platform that provides a collaborative environment for developers. It offers three payment plans, with the first of them being the free version. Since the emergence of AI, the company has started offering AI features that help coders improve their performance, and that of their code. Its highest-priced tier, GitLab Ultimate, has gained so much traction thanks to its AI offerings that it now accounts for over 50% of the company’s annual recurring revenue.
It’s not just the AI features that are driving the growth though. The company also ticks another important box for developers: security. By allowing users to create self-hosted models, the company gives them the unique ability of not having to take their data out of their organization. This helps reduce security breaches and is also what attracts customers like the US government to use GitLab.
Last but not least, the transparency and privacy offered by GitLab provide the icing on the cake. The unique moat that this company enjoys should help it cater to most of the $40 billion TAM it commands. The stock is relatively flat for the year despite the outperformance since January, which would suggest there is still ample time for investors to get in while the rally is beginning to shape up.
Overall GTLB ranks 6th on our list of the software infrastructure stocks outperforming in 2025. While we acknowledge the potential of GTLB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as GTLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
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