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 Calix Inc. (NYSE:CALX) 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.
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Calix Inc. (NYSE:CALX)
Calix Inc. is a software and cloud systems, platforms, and services provider. It offers Calix Intelligent Access EDGE, Calix Revenue EDGE, and Calix Cloud platform. The company sells its products through resellers and its direct sales force. Calix is up over 21% this year, with much of that price appreciation coming on the back of solid earnings in late January.
The company was able to deliver a revenue close to the higher end of its guidance and with a 34% growth in RPOs, a metric considered a good indicator of future revenue, the market took a liking to the stock. The company relies on large customers for about one-third of its revenue, and it is these customers that are driving its growth.
Apart from the earnings momentum, CALX is continuously gaining market share and added 18 new customers by snatching them from competitors. This is a sign that the company is offering better solutions, which will continue to help it eat into other companies’ market share. Amid international expansion, the company’s gross margin also reached over 55% helping it improve its profitability.
Overall CALX ranks 13th on our list of the software infrastructure stocks outperforming in 2025. While we acknowledge the potential of CALX 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 CALX 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.
