'Inconceivable to Me': Apple Stock (NASDAQ:AAPL) Drops as U.S. Government Calls It Out
Don't Miss TipRanks' Half-Year Sale
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
There is a lot at stake in determining production locations; while Apple is looking to get out of China, the Trump Administration wants Apple coming back to the United States, with President Trump reportedly telling Apple CEO Tim Cook: 'I don't want you building in India.' But with supply chain analysts declaring that a wholly United States-made iPhone could cost upward of $3,500, it is also the kind of thing that Apple is trying to balance.
This in turn led to Navarro noting: 'With all these new advanced manufacturing techniques and the way things are moving with AI and things like that, it's inconceivable to me that Tim Cook could not produce his iPhones elsewhere around the world and in this country.' Indeed, 'in this country' proved a tall order; Apple recently announced plans to put $500 billion worth of investment in to the United States, including the assembly of some AI servers.
An AI Boost
Apple's work—or lack thereof—in artificial intelligence (AI) has left investors piqued over the last few months. But there are signs that Apple is looking to augment its presence in AI, as evidenced by reported plans to buy two new firms: TrueMeeting and WhyLabs.
With TrueMeeting, Apple gets access to software that allows users to produce a 'hyper-realistic digital twin' of the user for use as an avatar in meetings. This works especially well for those whose cameras or internet connections do not do well with live video meetings. Meanwhile, WhyLabs works to inject some mental health into AI systems, working to prevent '…drift and performance degradations,' sometimes known as 'hallucinations.'
Is Apple a Buy, Hold or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 15 Buys, 10 Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 6.26% loss in its share price over the past year, the average AAPL price target of $226.36 per share implies 7.69% upside potential.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
26 minutes ago
- The Hill
China hawks skeptical of Trump chip deal
Trump on Monday agreed to allow tech giants Nvidia and AMD to secure export licenses to sell their advanced artificial intelligence (AI) chips in China in exchange for a 15 percent cut of the profits. The White House said Tuesday that more such deals could be on the table. The unusual deal doesn't just raise legal questions. Experts say the U.S. should be wary of turning over American-made technology that could boost its adversary's AI capabilities, at a time when the two countries are fiercely competing for dominance. The security concerns appear to be a two-way street. China urged tech companies there to avoid any purchase of Nvidia's H20 chip, citing security issues. The move once again has Trump at odds with Congress's China hawks, who argue the administration is shortchanging America's national security interests to make a buck. Rep. Raja Krishnamoorthi (Ill.), the top Democrat on the House Select Committee on the Chinese Communist Party, in a statement said the most troubling part of the deal was a contradiction at the heart of the policy. 'The administration cannot simultaneously treat semiconductor exports as both a national security threat and a revenue opportunity,' he said. 'By putting a price on our security concerns, we signal to China and our allies that American national security principles are negotiable for the right fee.' The same panel's GOP chair, Rep. John Moolenaar (Mich.), said there are 'questions about the legal basis' for such a deal. 'Export controls are a frontline defense in protecting our national security, and we should not set a precedent that incentivizes the Government to grant licenses to sell China technology that will enhance its AI capabilities,' he said in a statement.
Axios
26 minutes ago
- Axios
D.C. business leaders warn Trump's crackdown may hurt tourism
Restaurant and hospitality groups are pushing back on President Trump 's depiction of the District as a hotbed of "crime, bloodshed, bedlam and squalor," saying the city is safe — and open for business. Why it matters: Several D.C. industry leaders say Trump's rhetoric could deter visitors and hurt a tourism economy already affected by the administration's policies and mass federal firings. By the numbers: 48 groups have canceled or changed their D.C. plans since October due to political concerns, Destination D.C. tells Axios. Their estimated economic loss for the city: more than $61 million, based on projected hotel room nights. State of play: The tourism marketing organization is planning outreach to groups that have booked events or are considering them, according to the Washington Business Journal. That includes sharing stats that show D.C. violent crime has hit a 30-year low. The organization is also joining in on the viral " love letter" to D.C. trend, where locals share real-life portrayals of the city. Reality check: Destination D.C. tells Axios that the estimated 2025 losses due to political reasons represent just 2% of the projected revenue generated for the city, "so there is still a lot of positive production happening for the city." Meanwhile, the Restaurant Association Metropolitan Washington (RAMW) has a message ahead of Summer Restaurant Week, which starts Monday: "D.C. is open for business." "Next week is crucial for some to make it through Labor Day," RAMW CEO Shawn Townsend says of the weeklong event, which aims to draw diners to offset a typical August slowdown. "Folks may be thinking, 'Why go Downtown when I can do Restaurant Week in Bethesda or Tysons?'" Zoom in: RAMW is telling its members to promote positivity on social media and talk directly to diners if they cancel reservations: "It's like any major city — be careful — but D.C. is not a war zone." It's not just fear of crime — the armed presence may hurt, too. "If I'm coming in from out of town, I wouldn't want to bring my family to a city that has National Guard on every corner," says Townsend.
Politico
27 minutes ago
- Politico
Allies use F-35s as leverage against Trump's tariffs
'For Sánchez, it's just very convenient to play Trump's victim,' the person said. The Swiss deal to buy 36 F-35 jets squeaked through a 2021 referendum with just over 50 percent support, and new tariffs reignited the political fight. Swiss lawmakers pushed to cancel the purchase when U.S. tariffs hit 39 percent , but the government on Wednesday reaffirmed its intent to buy the jets and ordered a review. A decision is due in November. Swiss officials said they can't pin down a final price because the U.S. has not agreed to one, leaving the contract open to swings in inflation, higher raw material costs and customs duties — which could add as much as $1.6 billion. Other prospective buyers, such as Portugal, have delayed decisions amid doubts over U.S. reliability. Lockheed Martin noted that the United Kingdom, Denmark and Belgium have each recently announced their intent to buy at least 10 F-35s. 'Foreign military sales are government-to-government transactions, and this matter is best addressed by the U.S. or country governments,' Lockheed spokesperson Jacqueline Lorenzetti said. The White House defended Trump's tariffs as an economic boon and noted that he pushed NATO's defense spending pledge to 5 percent of GDP, which is expected to benefit U.S. arms makers. 'President Trump has done more to support America's military industrial base than any president in decades — including by selling American-made weapons to NATO allies, which will generate billions of dollars for American companies,' White House spokesperson Kush Desai said. The loss of orders from Spain or even Switzerland would have little immediate impact on production, according to one former Pentagon official, who was granted anonymity to discuss a sensitive matter. Those aircraft wouldn't reach the line for more than a year, and other customers could easily step in to take their place.
