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 Samsara Inc. (NYSE:IOT) 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 data analyst wearing virtual reality goggles while analyzing on-board telematics.
Samsara Inc. (NYSE:IOT)
Samsara Inc. designs and implements solutions that connect data from physical operations to its cloud platform. The company’s applications include vehicle telematics, mobile apps and workflows, and video-based safety. The company serves various industries including healthcare & education, food & beverage, transportation, construction, and other industries.
Samsara is another business benefiting from a subscription-based business model. The company’s Q3 results showed a 36% revenue surge in Q3, showcasing how its IoT solutions are helping it expand its customer base. The stock is up 24% for the year on the back of this impressive growth. However, there are concerns about its valuation. A 36% growth rate isn’t easy to sustain. The company’s own guidance points to a 22% – 23% YoY growth.
Irrespective of whether the company can deliver on these promises, volatility is likely going to stay. The stock still hasn’t reached the heights it was at just two months ago in December. It may be one of the best performers year to date, but the December dip has a big part to play in that outperformance. Investors would like to proceed with caution on this stock due to its valuation risk.
Overall IOT ranks 9th on our list of the software infrastructure stocks outperforming in 2025. While we acknowledge the potential of IOT 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 IOT 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.
