Investors aren't appreciating just how well Apple will do in the coming years, noted tech investor Gene Munster told CNBC on Tuesday.
The tech giant reported earnings and guidance after the bell on Tuesday that beat estimates, sending the stock higher in extended trading.
"This company is an earnings powerhouse," said Munster, founder of the venture capital firm Loup Ventures.
Apple announced earnings per share for the first quarter were $2.46, versus $2.36 forecast by Refinitiv consensus estimates. Its projected third-quarter revenue was $52.5 billion to $54.5 billion versus the $51.94 billion by Refinitiv consensus estimates.
In an interview with CNBC's Josh Lipton, CEO Tim Cook said Apple's performance in China had improved over the previous quarter. That is a part of Munster's bullish thesis, as are the stock buybacks the company announced on Tuesday.
Apple said that it would spend $75 billion on share repurchases and it also approved a 75 cent dividend per share, a 5% increase.
"This is a huge deal," Munster said on "Fast Money." He calculates the buybacks could boost the stock by 25% over the next five years.
He's also sticking by his call that Apple is the best way to play 5G.
"Investors are largely underappreciating what this stock could do," said Munster.
"This story could be a $350 stock over the next couple years, and I think they are going to surprise people on this earnings power."
— CNBC's Kif Leswing contributed to this report.