Why Shares of Apple Are Surging Today

Key Points

• Earlier this week, Apple announced a $600 billion investment in the U.S.

• That seemed to lower tensions between the company and President Donald Trump.

• One Wall Street analyst views the event as positive and raised his price target on the stock.

• 10 stocks we like better than Apple ›

Shares of Apple (NASDAQ: AAPL) traded nearly 4.3% higher as of 2:35 p.m. ET today. Analysts are more optimistic that the company has squashed some of the tariff drama with President Donald Trump's administration.

Investing $600 billion in America will pay off for shareholders

Many large tech companies have been in the crosshairs of the Trump administration, which seeks to bring more manufacturing back to the U.S. Trump recently announced that he would slap a 100% tariff on semiconductor imports unless companies are building or investing in the U.S.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Image source: Getty Images.

Earlier this week, Apple, which is one of the hardest-hit large tech companies by tariffs, announced a $600 billion U.S. investment. While it sounds costly, it's the better alternative to higher tariffs, Melius Research analyst Ben Reitzes wrote in a note today. Reitzes also reiterated a buy rating on the stock and raised his price target by $20 to $260.

"It relieves Apple from paying incremental tariffs on U.S.-bound iPhones from India," Reitzes said, adding that a stronger iPhone production cycle could begin in the fall. "We are going to take a risk here and raise our target and our numbers, taking out a huge portion of our tariff hits."

One problem potentially solved

Apple's stock has struggled this year because of how much of the company's production is abroad in China, India, and Vietnam. Even after the big run this week, shares are still down about 5.5% on the year.

The company has also struggled to convince investors that it has a strong road map in place for artificial intelligence. While that challenge remains, removing some of the tariff overhang is certainly a big step in the right direction and allows the company to focus more on its core business.

Should you invest $1,000 in Apple right now?

Before you buy stock in Apple, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Apple wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $636,563!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,108,033!*

Now, it’s worth noting Stock Advisor’s total average return is 1,047% — a market-crushing outperformance compared to 181% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of August 4, 2025

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.