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 Palantir Technologies Inc. (NASDAQ:PLTR) 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 manipulating a vast network of code on virtual monitors.
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.
Overall PLTR ranks 1st on our list of the software infrastructure stocks outperforming in 2025. While we acknowledge the potential of PLTR 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 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.
