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 MongoDB Inc. (NASDAQ:MDB) 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 software engineer hosting a remote video training session on a multi-cloud database-as-a-service solution.
MongoDB Inc. (NASDAQ:MDB)
MongoDB Inc. is a general-purpose database platform provider. It offers a range of products and services including MongoDB Enterprise Advanced, MongoDB Atlas, and MongoDB Community Server. The company also provides consulting and training services. The stock is up over 13.5% this year and analysts are optimistic it has much more to go.
Morgan Stanley picked the stock as a top pick in its 2025 generative AI outlook report. The investment bank believes that the cost of data and computing going down aligns well with the broadening capabilities and the increasing demand for software infrastructure. This is likely going to positively affect the earnings of the company in 2025.
Similarly, analysts at financial services firm Cantor have a price target of $344 on the stock, a 23.7% upside from current levels:
we could see a scenario where numbers improve off these changes, given the consumption nature of the business, would lead to torque to the upside and drive revenue growth to mid 20%
71% of MongoDB’s Q3 revenue came from its cloud offering called MongoDG Atlas. It looks like this business segment is still in an early growth stage and poised to power the company’s growth in the coming quarters.
Overall MDB ranks 14th on our list of the software infrastructure stocks outperforming in 2025. While we acknowledge the potential of MDB 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 MDB 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.