Why These 15 Software Stocks Are Skyrocketing So Far in 2025

Software stocks have been spearheading the stock market’s rally over the past two years and there seems to be no slowing down for the broader software industry. Investors who’ve gotten in early into some of the top software stocks right now have realized multibagger returns, and there’s likely more money to be made as the rally continues.

Of course, I’d be lying if I said I knew which stocks would be the ones to deliver parabolic returns next. That said, you could still find them yourself if you look at the top-performing software stocks so far this year. Many of them are gaining significantly for the right reasons. Some of these top-performing software stocks have a long runway and can mature into much bigger companies down the line.

A medical professional demonstrating the use of a Software-Based Prescription Digital Therapeutics Platform for treating Type 2 Diabetes.

Methodology

For this article, I screened the top-performing software stocks year-to-date. Stocks that I have covered recently will be excluded from this list.

I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

15. Innodata (NASDAQ:INOD)

Number of Hedge Fund Holders In Q3 2024: 10

Innodata (NASDAQ:INOD) is a data engineering company that specializes in AI.

The stock is up significantly so far this year as the AI rally continues and its financials have remained solid. In Q3 2024, it exceeded prior guidance and won three new big tech customers in the first nine months of 2024 on top of five “Magnificent 7” customers won in 2023.

Full-year 2024 revenue guidance raised to 88–92% year-over-year growth and analysts project 50% revenue growth in 2025, with free cash flow expected to possibly reach $50 million.

Analysts have high hopes for its Q4 2024 earnings report after the market closes on February 20, 2025.

The consensus price target of $38.2 implies 29.05% downside.

INOD stock is up 36.28% year-to-date.

14. Materialise NV (NASDAQ:MTLS)

Number of Hedge Fund Holders In Q3 2024: 6

Materialise NV (NASDAQ:MTLS) is a 3D printing company.

The stock is up significantly year-to-date as investors are pricing in expectations of strong earnings results on February 20, 2025.

It has also had 9.1% revenue growth in manufacturing services and 24.5% growth in the medical segment in Q3 2024.

Analysts expect Q4 2024 earnings of $0.05 per share and revenue of $71.66 million.

The consensus price target of $9.5 implies 1.25% downside.

MTLS stock is up 36.65% year-to-date.