We recently published a list of 10 Best Software Infrastructure Stocks to Buy According to Analysts. In this article, we are going to take a look at where SentinelOne, Inc. (NYSE:S) stands against other best software infrastructure stocks to buy according to analysts.
Companies today allocate significant resources to various aspects of software infrastructure, including servers and data centers for secure data storage and processing, cloud migration and management for scalable environments, network monitoring and management to ensure stability and security, and communication software. Additionally, software delivery and deployment solutions streamline application deployment, while bug tracking and error handling systems manage and resolve software issues. The increasing demand for cloud computing, digital transformation, and the integration of advanced technologies like artificial intelligence and machine learning are expected to drive substantial growth in the global software infrastructure sector. As organizations continue to prioritize agility, scalability, and efficiency, the software infrastructure market is projected to expand rapidly.
According to a January 2025 report by The Business Research Company, the infrastructure software market size is projected to grow from $210 billion in 2024 to $220 billion in 2025, with a growth rate of 5.1%. The market has experienced strong growth in recent years due to spending on legacy system modernization, the increase in remote work, cybersecurity concerns, automation, and application performance optimization. The research firm anticipates continued strong growth, with the market expected to reach around $283 billion by 2029, at a compounded annual growth rate (CAGR) of 6.5%.
Major players in the sector will continue to play a significant role by investing heavily in enhancing their offerings to capture market share. These companies are focusing on developing innovative solutions that leverage AI and automation to improve operational efficiency and enhance the user experience.
Cantor Fitzgerald analyst Thomas Blakey recently initiated coverage of 18 names in infrastructure and artificial intelligence software. In a research note to investors, he highlighted the growing importance of infrastructure software due to the ongoing secular expansion of AI and generative AI. These developments drive the demand for unified, secure, and highly integrated data systems, observable infrastructure, real-time computing and networking capabilities, and enhanced workflows and collaboration. Additionally, the analyst expects cloud infrastructure platforms to be pivotal in consolidating these functions.
Our Methodology
To identify the 10 best software infrastructure stocks, we conducted extensive research to compile a list of fundamentally strong U.S. listed software infrastructure companies with a market capitalization of $2 billion and above. We then ranked the stocks in ascending order of their potential upside, with the stock having highest upside ranked at the top.
Note: All pricing data is as of market close on February 7.
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SentinelOne Inc. (NYSE:S)
Upside Potential: 25%
Number of Hedge Funds: 37
SentinelOne, Inc. (NYSE:S) is a cybersecurity company that excels in endpoint protection solutions powered by artificial intelligence. The company offers its Singularity platform, which integrates prevention, detection, response, and hunting capabilities to safeguard organizations against advanced cyber threats. Its technology is designed to secure endpoints across various environments, including cloud, on-premises, and hybrid infrastructures.
In early December, SentinelOne, Inc. (NYSE:S) announced its Q3 2025 earnings results for the quarter ending October 2024. The company’s revenue surged by 28% year-over-year (YoY) to $210.6 million, and its annualized recurring revenue (ARR) increased by 29% to reach $859.7 million. This growth was driven by the number of customers with ARR exceeding $100,000, which grew by 24% to 1,310 during the quarter. Significantly, the company reduced its operating losses, with the adjusted operating loss margin improving from (11)% to (5)%. SentinelOne also achieved positive free cash flow on a trailing twelve-month basis for the first time. Based on this strong performance, the company raised its FY 2025 revenue growth outlook to 32%. SentinelOne, Inc. (NYSE:S) is well-positioned to capitalize on the increasing demand for cybersecurity solutions as organizations continue to face sophisticated cyber threats.
Oppenheimer analyst recently initiated coverage of SentinelOne, Inc. (NYSE:S) with an Outperform rating and a $32 price target. The analyst highlighted several factors for this positive outlook, including an improved leadership team, enhanced operational execution, and a stronger sales and go-to-market strategy. He also emphasized the company’s potential in non-endpoint security, noting significant cross-sell and upsell opportunities. Moreover, the analyst believes that the consensus is underestimating SentinelOne, Inc. (NYSE:S)’s recent strategic adjustments and the overall value of its platform.
Overall, S ranks 7th on our list of best software infrastructure stocks to buy according to analysts. While we acknowledge the potential of S to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than S 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 is originally published at Insider Monkey.
