15 Software Infrastructure Stocks Outperforming In 2025

1. Palantir Technologies Inc. (NASDAQ:PLTR)

Palantir Technologies Inc. is a software platforms builder and deployer for the intelligence community. The company provides Palantir Foundry, Palantir Gotham, Palantir Apollo, and Palantir Artificial Intelligence Platform (AIP). The stock, which was the best S&P 500 performer in 2024, is already up 46% so far this year!

As one of the most important AI companies out there today, it was the recent earnings report that is driving the YTD returns for PLTR investors. The commercial revenue grew 54% YoY while government revenue was up 45%. The stock shot up nearly 25% after the earnings report.

Palantir provides rapid and scalable deployment of AI into existing workflows which is what makes its business scalable to different industries. For instance, in the last quarter, the company signed a $67 million deal with a major pharmacy in the US and a $40 million deal with a telecom company. The improvements in productivity and the resulting cost efficiencies mean firms don’t hesitate to spend money on Palantir’s offerings.

With a 31% growth guided by the company’s management for 2025, the share price is likely to keep going up, especially on better-than-expected quarterly reports throughout the year.

Palantir is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held PLTR at the end of the third quarter which was 44 in the previous quarter. While we acknowledge the potential of PLTR as a leading AI 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 PLTR 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.