Apple Inc. is pressured by both the White House and the race for artificial intelligence gadgets. This has kept its shares from bouncing back while other large technology stocks climb.
At the start of May, Apple was still the world’s biggest company in terms of market value. Over the weeks that followed, it slipped to third place behind Microsoft Corp. and Nvidia Corp. According to Bloomberg, the stock has fallen 1.2% in the past month, even as the tech-heavy Nasdaq 100 Index jumped 13%.
On Wednesday, Apple fell another 2.3%.
Moreover, OpenAI revealed it had bought a young company co-founded by long-time Apple designer Jony Ive. The newcomer is developing hardware powered by artificial intelligence, raising the prospect of shiny new devices that could challenge the iPhone and Mac lineup.
Yet market watchers say uncertainty is increasing due to President Donald Trump’s repeated attacks on the company’s overseas factories. Early this month, Trump said he “had a little problem with Tim Cook” and told the Apple chief executive to stop building plants in India.
Trump’s ongoing attacks on Apple are a red flag, analyst warns
“It’s a red flag for me that Trump continues to single out Apple and seems to have something against them,” said Randy Hare, who leads equity research at Huntington National Bank. “You can’t predict what’s going to happen, and that makes me cautious.”
Political worries have shaken Wall Street this year. Stocks fell on Wednesday after new fears about the growing U.S. deficit led Moody’s to lower its credit outlook. Investors are also eyeing any changes to Trump’s signature tax law bill.
Apple’s share price has been tied to trade tensions since tariffs on Chinese goods were suggested last year. The stock plunged in early April when the tariffs were announced, then surged 17% from that low after Washington spared smartphones, computers, and other electronics from the reciprocal tariffs, and both the United States and China agreed to ease some duties.
The Apple VIX, an index that tracks how much its stock might swing, has fallen to less than half of the five-year high it hit just a month ago.
Still, Trump’s public comments continue to raise concerns. He recently praised Nvidia’s chief executive for attending an investment gathering in Saudi Arabia while pointing out that Cook did not.
“Trump pointing out that Cook isn’t at some summit makes the hair on the back of my neck stand up,” Hare said. “Anyone who tells you they can quantify this risk is wrong.”
Fixing Trump’s concerns about Apple’s production network will not be quick
Building iPhones and other gear in the United States is widely viewed as next to impossible in the near term. Lamar Villere, partner and portfolio manager at Villere & Co., doubts the political attacks will lead to strict new rules. “It gets a lot of attention from Trump, not all of it good, but I think investors are growing callous to his complaints,” he said. “We’re not going to see legislation come out based on anger against one company.”
Even so, political friction is only part of Apple’s to-do list. Quarterly results released earlier this month highlighted a sales slowdown in China and the harm from remaining tariffs.
At least two research firms lowered their ratings after the report, adding to the company’s image as one of the market’s least-favored big tech names.
Morgan Stanley calls Apple “the most under-owned mega-cap tech stock.” This is due to Apple’s average stake in the top 100 actively managed institutional portfolios versus its standing in the S&P 500 at the end of the first quarter of 2025.
Apple’s stock price is about 26.6 times the profits analysts expect it to earn, well above its usual 10-year average. Moreover, it costs more than that of faster-growing rivals, even though people still wonder about its AI plans.
To Huntington’s Hare, the innovation gap matters more than politics. “We’re not sure how Apple is going to offer AI or when,” he said. “It’s not growing the way it used to, and the multiple is on the high end. Those are good reasons to be underweight even before you get to the political climate.”
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