"5 Software Stocks to Consider as Tech Sells Off"

Listen up, folks! The tech sell-off is in full swing, but that doesn’t mean you should hit the panic button. In fact, this is the perfect time to scoop up some incredible software stocks that are poised for massive growth. Let’s dive into the five software stocks that you need to consider right now!



1. Arista Networks (ANET) - *The AI Network King*

Arista Networks is leading the charge with its AI-driven network solutions. Evercore’s analysts are bullish on ANET, predicting revenue growth beyond 20% in 2025. With a conservative guide of 15-17% revenue growth, there’s plenty of room for upside as demand for AI ethernet switching and campus growth accelerates. This stock is a no-brainer for anyone looking to capitalize on the AI revolution!

2. Apple (AAPL) - *The AI Powerhouse*

Apple’s AI capabilities are set to enhance iPhone sales over the long term, even if an immediate super cycle isn’t expected. Apple is poised to monetize third-party AI efforts without the substantial capital expenditures other mega-cap peers face, making it a strong long-term investment. With steady growth in Apple’s Services and Wearables segments, this stock is a must-have in your portfolio!

3. Amphenol (APH) - *The Diversified Growth Machine*

Amphenol’s diversified end segments and strong merger and acquisition strategy make it a critical driver for sustained growth. With exposure to industrials, mobile networks, and military segments, APH is expected to support 10%+ EPS growth through 2025. Recent acquisitions like CIT and Andrews are fueling this growth, making APH a solid bet for long-term investors.

4. IBM (IBM) - *The Enterprise AI Titan*

IBM is riding the wave of enterprise AI tailwinds with a $3 billion AI consulting business and software momentum from offerings like WatsonX and Red Hat. Evercore anticipates the launch of IBM’s z17 mainframe and potential M&A activity to further boost revenue growth. This stock is a powerhouse in the AI consulting space and is set to dominate the market!

5. Vertiv (VRT) - *The AI Infrastructure Champion*

Vertiv is benefiting from rising demand for AI infrastructure. Evercore anticipates margin expansion and revenue growth beyond the current 8-11% target, supported by an increase in AI data center demand and power management solutions. This stock is a hidden gem in the AI infrastructure space and is poised for significant growth!

Now, let’s talk about the broader market. The tech sell-off has created a buying opportunity for savvy investors. The MCF Corporate Finance Q4 2024 software update report highlights that software company valuations have reached unprecedented heights due to the AI boom. With innovations surrounding GenAI, software companies are trading at 6.2x the Current median EV / NTM revenue estimate. This is a clear indication that the AI revolution is here to stay, and software stocks are the way to play it!

The enterprise-level usage of GenAI almost doubled year-over-year in 2024, and around 65% of enterprises now use the technology. This transition from pilot testing to full-scale GenAI implementations is unlocking new revenue streams and enhancing workflows and customer experiences. The investment and funding for GenAI-based software companies also increased sharply, with GenAI raising around $56 billion in funding in 2024. This funding was driven by significant rounds from companies like DataBricks, OpenAI, and Anthropic, which claimed more than 40% of the total AI funding across the United States, Europe, and Israel.

So, don’t miss out on this opportunity! The tech sell-off is a buying opportunity, and these five software stocks are the ones to own. BUY NOW and watch your portfolio soar!