Tech Stocks and AI: The Hidden Goldmine Investors Can’t Afford to Ignore in 2025
The S&P 500’s remarkable rebound in the first half of 2025—climbing nearly 11% from April lows—has been powered largely by the tech sector’s explosive momentum. With information technology stocks surging over 23% this quarter, AI is no longer just a buzzword; it’s the engine driving this rally. But here’s the kicker: according to Gene Munster, managing partner at Deepwater Asset Management, the AI trade is far from peaking. In fact, he predicts that 2025 is just the beginning of a multi-year transformation that could catch many investors off guard.
Why? Because the market is only starting to grasp the depth and breadth of AI’s impact across industries. Munster’s insight is a clarion call for investors to look beyond headline-grabbing names like Nvidia or Meta and dive deeper into the subtler, high-potential plays in the tech ecosystem.
The Overlooked Winners: Box and Apple
Munster highlights two companies poised to outperform in the second half of 2025: cloud storage innovator Box and tech giant Apple. Both represent distinct facets of the AI revolution that are underappreciated by Wall Street.
Box: The Quiet AI Powerhouse
While Box’s shares have gained a modest 5% year-to-date, its competitor Dropbox has stumbled nearly 7%. The difference? Box is aggressively deploying AI “agents” — sophisticated tools designed to boost productivity by extracting actionable insights from vast data troves. For businesses and consumers alike, this capability is becoming indispensable.
Wall Street forecasts Box’s revenue growth at around 9% for 2025 and 7% for 2026, but Munster believes these estimates are conservative, suggesting growth closer to 10%. This discrepancy hints at a classic market inefficiency: undervaluation of AI’s practical, incremental benefits rather than just headline-grabbing innovations.
From an investment standpoint, that means Box could be a sleeper hit. With 7 out of 10 analysts rating it a buy or strong buy and a consensus price target implying over 14% upside, the stock offers a compelling risk-reward profile. For advisors and investors, this signals an opportunity to diversify AI exposure beyond the usual suspects and tap into enterprise software’s growing AI integration.
Apple: The Underrated Upgrade Cycle
Apple’s stock has taken a hit in 2025, down nearly 15%, partly due to tariff-related cost pressures and cautious iPhone sales expectations. Yet Munster argues these concerns overlook a critical factor: a massive upgrade cycle underway, fueled by consumers holding off on new purchases for years.
Despite the absence of flashy AI features or Siri breakthroughs expected until mid-2026, Apple’s entrenched ecosystem and loyal user base create a “low bar” environment ripe for positive surprises. The company’s ability to leverage AI improvements subtly—through enhanced user experience and integration—could drive stronger-than-anticipated iPhone sales.
With 33 out of 50 analysts rating Apple a buy or strong buy and an 8% upside consensus, the stock could rebound as the upgrade cycle gains momentum. For investors, this suggests a strategic entry point into a tech stalwart that combines AI potential with solid fundamentals.
What’s Next for Investors?
The key takeaway from Munster’s analysis and broader market trends is that AI’s impact is evolving from hype to tangible business transformation. Investors should:
- Expand AI Exposure Beyond the Usual Giants: Look for companies like Box that are embedding AI into essential business processes rather than chasing headline-grabbing AI narratives.
- Monitor Upgrade Cycles and Cost Dynamics: Apple’s scenario underscores the importance of understanding product cycles and geopolitical risks (tariffs) that can create short-term volatility but long-term opportunity.
- Adopt a Long-Term Horizon: AI adoption is still in its infancy. Expect surprises and sustained growth beyond 2025 as companies refine AI integration and new use cases emerge.
A Unique Perspective: The AI “Agent” Economy
One under-discussed trend is the rise of AI “agents”—autonomous digital assistants that perform complex tasks across various sectors. Box’s success with these agents exemplifies a broader shift where AI is not just a tool but a digital workforce augmenting human capabilities. According to a recent Gartner report, by 2027, 70% of enterprises will deploy AI agents to automate knowledge work, potentially boosting productivity by up to 30%.
This shift invites investors to rethink what “AI stocks” mean. It’s no longer just about chipmakers or consumer-facing AI but about companies enabling AI-driven workflows. Advisors should educate clients on this nuance, emphasizing diversified exposure to AI’s ecosystem.
Final Word
The AI trade is far from over—it’s entering a new phase where practical applications drive sustainable growth. Investors who pivot now, embracing undervalued names like Box and recognizing the latent potential in stalwarts like Apple, stand to benefit immensely. As always, staying informed and agile is crucial in this rapidly evolving landscape.
For those seeking to capitalize on AI’s next wave, the message is clear: dig deeper, think broader, and prepare for a marathon, not a sprint. The future belongs to those who see beyond today’s headlines and position themselves at the forefront of technology’s quiet revolution.
Sources: CNBC Pro interview with Gene Munster, LSEG analyst ratings, Gartner enterprise AI adoption report.
Source: Deepwater’s Gene Munster likes these tech plays in the second half of 2025