Stock Posts Biggest Weekly Gain in Over Five Years
Apple shares rose 13% this week, marking their largest weekly gain since July 2020, after CEO Tim Cook appeared alongside President Donald Trump at the White House. The stock closed Friday at $229.35, up 4% for the day, adding more than $400 billion to Apple’s market capitalization, which now stands at $3.4 trillion.
The rally cements Apple’s position as the world’s third-most valuable company, behind Nvidia and Microsoft, and ahead of Alphabet and Amazon. Analysts attributed the surge to investor optimism following a White House announcement on Apple’s long-term U.S. investment plans.
$100 Billion Commitment to U.S. Suppliers
During the White House meeting, Apple committed to spending $100 billion on American companies and components over the next four years. The plan includes increased purchases of U.S.-made semiconductor chips, a move welcomed by Trump, who announced that Apple would be exempt from future tariffs on imported chips. The president suggested such tariffs could otherwise have doubled chip prices.
The exemption addresses investor concerns over the potential financial impact of new trade policies. In July, Apple warned it could face over $1 billion in additional costs from tariffs in the current quarter if no changes were made.
Analyst Praise for Risk Management
JP Morgan analyst Samik Chatterjee described Apple’s handling of trade-related uncertainty as a “masterclass in managing uncertainty,” noting that the White House agreement significantly reduced the overhang from tariff risks. Chatterjee maintains an overweight rating on Apple shares, citing improved visibility for the company’s cost structure and growth outlook.
The market’s positive response reflects both the strategic value of securing tariff exemptions and the signal of strong ties between Apple leadership and U.S. policymakers. This combination appears to have reassured investors about the company’s ability to navigate geopolitical challenges.
Strong Recent Earnings Support Momentum
Apple’s White House announcement comes shortly after the company reported June-quarter results that exceeded expectations. Overall revenue rose 10% year over year, with iPhone sales climbing 13%. These results, combined with the new domestic investment plan, have strengthened investor confidence in Apple’s near-term growth prospects.
With reduced tariff risk, strong consumer demand, and an expanded U.S. supply chain strategy, Apple enters the next quarter in a stronger competitive position, according to analysts. The company’s performance this week underscores the market’s responsiveness to both policy developments and operational results.
