The tech sector has been experiencing a resurgence in 2025 after overcoming major macroeconomic challenges. With global IT spending expected to increase by 9.3% and a focus on generative AI, cybersecurity, and cloud services, the industry is gearing up for growth.
However, new difficulties have emerged, such as geopolitical tensions and regulatory barriers affecting tech companies that rely on international supply chains. President Trump’s tariff plans have added to the uncertainty, with additional charges on major tech manufacturing countries posing risks to the industry.
Generative AI is seen as a double-edged sword, projected to contribute significantly to the U.S. GDP by 2030 but also raising concerns about job displacement. The World Economic Forum emphasizes the need for collaboration between human critical thinking and AI capabilities to ensure inclusive economic growth.
Cybersecurity has become a top priority as the use of AI expands, with global spending expected to exceed $200 billion by 2028. Despite this investment, only 24% of existing gen AI projects are considered secure, highlighting the need to address trust issues in AI technology.
In the midst of these challenges and opportunities, Flex Ltd. (NASDAQ:FLEX) stands out as an overlooked tech stock with strong fundamentals and a focus on AI-driven businesses. With a P/E ratio of 11.59 and 52 hedge fund holders, Flex operates in two primary segments, providing solutions for a variety of industries.
Flex reported exceptional financial results in the third quarter of FY2025, with revenue growth driven by strong performance in key markets. The company’s strategic investments, including a new production plant in Dallas, position it well for future growth in AI-driven businesses.
Overall, Flex ranks 8th on the list of overlooked tech stocks to buy now. While the company shows promise, there are other AI stocks that may offer higher returns in a shorter time frame. Investors looking for opportunities in the AI sector can explore alternatives to Flex that trade at attractive valuations.
For more insights on AI stocks and investment opportunities, readers can check out related articles on Insider Monkey’s website. Disclosure: None.
