We recently published a list of . In this article, we are going to take a look at where Cerence Inc. (NASDAQ:CRNC) stands against other best performing software stocks to buy according to analysts.

The global software market has witnessed tremendous growth over the past few decades, emerging as a key driver of productivity, economic expansion, and technological advancement. Software, in its broadest sense, includes a diverse range of programs and applications that power computers and other digital devices, enabling them to perform specialized tasks. These range from basic operating systems to sophisticated enterprise solutions and even cutting-edge quantum computing technologies.

The rapid expansion of the software industry is driven by increasing digital transformation, the widespread adoption of mobile technology, and continuous innovations in fields like artificial intelligence (AI). Additionally, with cyber threats and data breaches becoming more frequent and sophisticated, businesses are placing greater emphasis on data security and privacy. This has fuelled the rising demand for cybersecurity solutions, including encryption technologies, compliance tools, and advanced security applications, as the software sector continues to evolve to address these critical concerns.

According to an August 2024 report by Precedence Research, the global software market was valued at approximately $737 billion in 2024. Their projections suggest that it will surge to $2.25 trillion by 2034, reflecting a compound annual growth rate (CAGR) of 11.8%. The U.S. software market, one of the largest globally, is expected to reach $676 billion by 2034, growing at a CAGR of 12% between 2024 and 2034.