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 Okta Inc. (NASDAQ:OKTA) 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 mobile application developer programming on a tablet, illustrating the power of the company's adaptive multi-factor authentication.

Okta Inc. (NASDAQ:OKTA)

Okta Inc. provides identity solutions to businesses. The company offers a portfolio of products and services including Single Sign-On, API Access Management, Access Gateway, Adaptive Multi-Factor Authentication, and Okta Device Access. OKTA sells its products through channel partners and sales force. The company’s stock is up 23% this year.

Okta may be a relatively smaller player but its growth rate has impressed many in the industry. In the last 8 years, the company has grown revenue at an average rate of 40%. This is better than its peers like Cisco, Palo Alto Networks, and Fortinet. But what’s driving the recent surge in price?

Okta is focusing on acquiring high-quality large customers. Its products are quickly becoming a top priority for companies looking to secure their systems as security continues to remain a top priority for many companies, second only perhaps to generative AI.

The company finally turned profitable in late 2024 which is one reason why the stock started to tick upwards after a volatile year. This upward momentum is likely to continue as the company cements its position in the industry in 2025.

Overall OKTA ranks 8th on our list of the software infrastructure stocks outperforming in 2025. While we acknowledge the potential of OKTA 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 OKTA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

 

Disclosure: None. This article was originally published at Insider Monkey.