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 Gen Digital Inc. (NASDAQ:GEN) 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.
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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Is Gen Digital Inc. (GEN) the Best Software Infrastructure Stock to Buy According to Analysts?
A close up of a computer monitor with a green padlock icon to symbolize the company’s cyber safety solutions.
Upside Potential: 19%
Number of Hedge Funds: 27
Gen Digital Inc. (NASDAQ:GEN) is a provider of cybersecurity solutions and digital privacy services, dedicated to protecting both personal and organizational data across various platforms. The company’s product suite includes antivirus software, performance management, identity theft protection, and online privacy tools. Gen Digital Inc. (NASDAQ:GEN) owns a portfolio of trusted brands such as Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner.
On January 30, Gen Digital Inc. (NASDAQ:GEN) released its Q3 2025 earnings results (fiscal year ending March 2025), which met street expectations. While the company reported a 4% year-over-year (YoY) increase in revenue to $986 million, adjusted EPS of $0.56 grew 15% YoY driven by cost discipline and improved operating leverage. Management also noted a slight increase in average revenue per user (ARPU), reflecting strong cross-sell and upsell momentum.
In a notable move, Gen Digital Inc. (NASDAQ:GEN) announced the acquisition of MoneyLion for $1.0 billion in cash (in addition to a $23/share CVR issued) in early December 2024. MoneyLion, a fintech company, operates a digital ecosystem for consumer finance. This acquisition aims to diversify Gen Digital Inc. (NASDAQ:GEN) into the full lifecycle of credit and financial wellness offerings for consumers, expanding into a $30 billion Consumer Digital Finance and Financial Marketplace, which is experiencing high-single to double-digit growth. The deal is expected to close in the first half of FY 2026. The company’s strong position to capitalize on the increasing demand for cybersecurity solutions, driven by rising cyber threats and data breaches, coupled with this expansion of its product portfolio, supports its future growth prospects.
Overall, GEN ranks 10th on our list of best software infrastructure stocks to buy according to analysts. While we acknowledge the potential of GEN 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 GEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
