10 Best Software Stocks to Buy According to Billionaires

8. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Billionaire Investors: 16

Billionaire Holdings: $2.3 Billion

Number of Hedge Fund Holders: 64

Palantir Technologies Inc. (NASDAQ:PLTR) is a software company that builds and deploys data integration and analytics platforms for both government and commercial clients. The company’s flagship products including Palantir Gotham and Palantir Foundry, enable users to analyze large datasets for actionable insights. Its solutions are widely used in defense, healthcare, and financial services, among other sectors.

Palantir Technologies Inc. (NASDAQ:PLTR) was among the top-performing stocks in 2024, delivering an impressive 340% rally. The company benefited significantly from the AI-driven euphoria, witnessing substantial growth in its platforms, particularly the Artificial Intelligence Platform (AIP). Over the past several quarters, Palantir has consistently reported accelerating revenue growth and improved profitability, fueling investor confidence. Its shares also recently received a boost following real-world applications demonstrated by various companies at its AIPCon 6 event, which enhanced the credibility of its platforms. Furthermore, Palantir announced new partnerships with organizations such as Databricks, Saronic Technologies, Archer, and Saildrone, further expanding its enterprise solutions portfolio.

On March 13, Loop Capital analyst Mark Schappel reiterated his Buy rating on the stock after a meeting with management which strengthened his confidence in its investment thesis. The analyst highlighted the company’s position as a leader in enterprise AI, noting that the industry is at a turning point, with pilot programs transitioning into full-scale deployments and AI adoption accelerating across industries. At the same time, he also noted risks from potential federal spending cuts and high valuation amid market volatility. While he reiterated his positive outlook, the analyst reduced Palantir Technologies Inc. (NASDAQ:PLTR) price target from $141 to $125 to incorporate compression in industry valuation multiples.