Software stocks are poised for an extraordinary year. 

Over the past few years, artificial intelligence (AI) has transformed from a futuristic buzzword into a tangible force that’s shaping industries. Companies have invested billions in AI research and development.

But 2025 marks a turning point. This year, those investments will begin delivering noticeable results – and, most important for investors, bottom-line growth.

What makes this year so pivotal? 

Let me explain…

First, many software companies spent the last two years embedding AI into their platforms. Now, these advancements – everything from enhanced automation tools to smarter analytics and personalized user experiences – are now fully operational. 

Early adopters are already reporting significant productivity gains. And customers are eagerly embracing these AI-driven tools. This will create a ripple effect – as companies that were previously cautious about AI adoption now feel the pressure to catch up.

Second, the current economic climate is favorable for innovation. 

With inflation stabilizing and interest rates becoming more predictable, businesses are ready to loosen their purse strings and implement solutions that promise both efficiency and competitive advantage. AI-powered software meets these demands, which makes it a top priority for IT budgets in 2025.

Finally, we’re seeing the emergence of entirely new AI-driven revenue streams. Companies are launching subscription services, AI-powered marketplaces, and innovative Software as a Service (SaaS) models that simply didn’t exist just a few years ago. 

And these initiatives aren’t just improving margins… 

They’re completely redefining the things that software companies can achieve.

As AI transforms from a cost center to a revenue driver, software companies stand to benefit immensely. Meanwhile, the investors who recognize the magnitude of this shift have the opportunity to get ahead of the crowd. 

This won’t just be “another year for software”… 

I believe that 2025 will be the year that AI turns potential into profit and transforms related companies into the leaders of a new tech revolution.

So, it shouldn’t surprise you to learn that I’m hyper-focused on opportunities in software companies as we step into 2025. And one has particularly caught my eye as a perfect addition to my Select Portfolio – a handcrafted portfolio of stocks that I believe are best positioned to return incredible profits this year. 

I’m holding a special event tomorrow – Thursday, January 9 at 11 a.m. Eastern time – to give you all the details about this special portfolio and how to set yourself up for success. So stay tuned – the event is completely free to attend.

Here’s to the future,

Matt McCallEditor, Market Insights