Apple Stock on Pace for Highest Close Since April as Wall Street Responds to Increased U.S. Investment

Apple stock has dropped 12% this year. (Win McNamee/Getty Images)

Apple stock was climbing again on Thursday after the company announced a sizable increased investment in the U.S.—which some Wall Street analysts believe was a smart step for the iPhone maker amid tariff uncertainty.

Apple said on Wednesday night that it would be increasing its investment in the U.S. to $600 billion over the next four years, after the company initially said in February that it would be investing $500 billion in the same time frame.

Shortly after the company officially made the announcement, CEO Tim Cook met with President Donald Trump in the Oval Office of the White House to talk about the investment further. During the meeting, Trump shared that he would be placing a 100% tariff on semiconductors being imported into the U.S., with some exceptions.

“The good news for companies like Apple is if you’re building in the United States, or have committed to build—without question—committed to build in the United States, there will be no charge,” Trump said.

Shares of Apple were rising 2.7% Thursday to $219.05 and were on pace for their highest close since April 2, according to Dow Jones Market Data. That means Apple stock has officially recouped its losses that began in April shortly after Trump first announced his wide range of so-called reciprocal tariffs.

Most Apple products have been temporarily exempt from the heftiest tariffs amid the ongoing Section 232 investigation, as the U.S. government looks into whether or not imports of certain products are a threat to national security. Investors are betting that Trump’s Wednesday announcement means that Apple—which wasn’t subject to tariffs during Trump’s first term—will be exempt from tariffs during his second term, at least to some degree.

“Given the recent development of Apple’s increased investment in the U.S., it seems increasingly likely that several Apple products will be exempt from tariffs,” BofA Securities analyst Wamsi Mohan wrote in a note Wednesday night.

Mohan raised his price target on Apple to $250 from $240 and maintained a Buy rating on the stock. He believes that there’s a chance Apple could gain market share in the U.S. if other smartphone competitors are forced to raise prices due to increased tariff costs.

Evercore ISI analyst Amit Daryanani wrote in a note Wednesday night that he thinks clarity surrounding the tariff overhang “should be an incremental positive for AAPL stock.” Shares of Apple have dropped 13% this year, as Wall Street has voiced concerns about potential tariff related margin pressures, lagging artificial intelligence tech, and the possible outcome of the Google monopoly case.

A federal judge ruled in August 2024 that Google had a monopoly in general search services and general text advertising. Alphabet investors are now waiting to hear what remedies the judge will order Google to adopt to mitigate that monopoly. Those remedies could include the banning of exclusive search engine agreements with companies like Apple. Google pays Apple an estimated $20 billion a year, and Apple in turn makes Google the default search engine on all of its devices.

Google has said it believes companies “should continue to have the freedom to do deals with whatever search engine they think is best for their users.”

“Near term, the focus will remain on the outcome of the DOJ’s lawsuit against GOOG (ruling could be announced this month),” Daryanani said. He rates Apple as Outperform with a $250 price target.

Write to Angela Palumbo at angela.palumbo@dowjones.com