Apple Shares Surge 13% After CEO Tim Cook’s White House Visit, Announces $100 Billion U.S. Investment Plan

Apple experienced its largest weekly stock gain since July 2020, with shares rising 13% after CEO Tim Cook joined President Donald Trump at the White House to announce a $100 billion investment plan focused on American companies and parts over the next four years. The announcement positively impacted investor sentiment, adding over $400 billion to Apple’s market capitalization, which now stands at $3.4 trillion, making it the third-most valuable company globally behind Nvidia and Microsoft.

The White House event emphasized Apple’s commitment to sourcing more American-made chips, a move welcomed by President Trump, who declared that Apple would be exempt from future tariffs that could have otherwise doubled the cost of imported chips. This development eased investor concerns about potential profitability hits from ongoing trade tensions and tariffs, which Apple had previously estimated could cost over $1 billion in the current quarter.

Analysts praised Tim Cook for effectively managing uncertainty around tariffs and trade challenges. Samik Chatterjee, a JP Morgan analyst, described Cook’s approach as a “masterclass” in navigating complex geopolitical risks, maintaining an overweight rating on Apple’s stock as a result. The positive market response reflects renewed investor confidence in Apple’s strategic direction.

This White House announcement follows Apple’s strong financial results reported two weeks earlier, which showed a 10% increase in overall revenue and a 13% growth in iPhone sales during the June quarter. These earnings underscored the company’s robust performance despite the pressures from global trade dynamics.

Overall, Apple’s combination of aggressive U.S. investment, tariff exemptions, and solid earnings propelled its stock to a multi-year high, reinforcing its position as a leading technology company with a strong foothold in American manufacturing and global markets.

Source: CNBC