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 Crowdstrike Holdings Inc. (NASDAQ:CRWD) 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.
Security personnel at their consoles, monitoring a global network of threats in real-time.
Crowdstrike Holdings Inc. (NASDAQ:CRWD)
Crowdstrike Holdings Inc. engages in the provision of cybersecurity solutions. Its integrated system provides data, cloud workloads, cloud-delivered protection of endpoints, and identity. The company offers a range of services including IT operations management, data protection, securing generative AI workload, endpoint and cloud workload security, and other services. When Crowdstrike systems were involved in a global IT outage in mid-2024, the stock was at all-time highs. Few would have thought that 7 months on, the stock would regain the same levels. But here we are, with the stock up 21% for the year and trading at all-time highs.
The relatively quick recovery proves that Crowdstrike is still the go-to vendor in its niche. Its superior product quality and high switching cost in the industry mean retaining customers isn’t a big issue. The company’s Falcon platform, which is now powered by AI, is improving with each passing day as it analyzes over 2 trillion events on a daily basis. The quality of learning from processing these events means its models are likely going to stay superior going forward. This learning also helps in countering zero-day cyberattacks: attacks that are a result of unknown vulnerabilities in hardware or software.
Finally, a subscription-based business model with 95% of the revenues coming from predictable recurring subscriptions means the financials of the company, much like its AI models, get stronger with each passing day.
Overall CRWD ranks 10th on our list of the software infrastructure stocks outperforming in 2025. While we acknowledge the potential of CRWD 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 CRWD 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.
