The AI (artificial intelligence) trade is getting heated as we move towards the midpoint of the year, with the S&P 500 now just a good day or two away from completing its so-called V-shaped recovery from the brutal spring correction (nearly a bear market for the S&P 500 as the TSX Index held its own relatively well) worsened by Trump’s sweeping tariff war with most of the world. If you’re a tad jittery after the volatility experienced a few months ago, you’re not alone. It’s hard to justify buying the stock on strength as tariff talks continue to dominate the headlines.
In any case, I think there are great value names that don’t entail paying all too high a premium for long-term AI exposure. In this piece, we’ll have a look at two great names for investors seeking growth at a reasonable price (GARP). As GARP clashes with the AI trade, I think the following names could be timely bets for the medium and long term.
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Apple
Apple (NASDAQ:AAPL) stock seems stuck in a bear market, with shares falling below the $200 level again following what can only be described as a less-than-exciting 2025 edition of WWDC (Worldwide Developers’ Conference). I saw the whole thing, and it was lighter in the AI than expected. After facing criticism for overpromising with its Apple Intelligence, which may be an early flop depending on who you ask, I think it’s no surprise that the latest WWDC was a bit lighter on the AI promises.
Does that mean Apple is ready to step away from the AI race?
Of course not! Rather, I think Apple’s just underpromising so that it can overdeliver a year or two from now. Indeed, there’s a high bar to pass for the next-level Siri to land. And it’s not yet above the high bar set by Apple. Despite the less-exciting and relatively AI-light WWDC, I still consider Apple to be a top AI play that’ll be worth the wait. For now, there’s Liquid Glass technology to get excited about as Apple applies more polish to its model that it wants to get right, even if it means showing up even later to the AI party.
After slipping more than 23% from its highs over AI jitters and underwhelming post-WWDC, I think it’s time to start thinking about doing some buying. Indeed, the stock is down nearly 7% in the past year, with a forward price-to-earnings multiple of 25.1 times, which is way too low for a firm that’s going slow and steady in this AI race. I think slow and steady may very well win the race. But, of course, time will tell.
Shopify
I’ve been pounding the table on Shopify (TSX:SHOP) and its AI potential for quite some time now (likely well over a year). And recently, I highlighted that some analysts covering the stock are starting to take notice. Indeed, Wall Street is catching on to the company’s AI prowess.
And with that, I believe, could accompany multiple expansion as the firm continues investing heavily in AI technologies to level up its product. Personally, I think Shopify is the most innovative tech firm in Canada and perhaps in the e-commerce scene. As such, investors may wish to watch the name to buy on any dips over the coming weeks and months. Shopify is the real deal. And to discount its AI powers, I think, would be a mistake.
