Apple Inc.

’s stock is showing signs of life after struggling through most of 2025, as the

tariff-related risks

that have weighed on the company start to ease.

Shares of the tech giant entered August down 17 per cent for the year due in part to concerns about the impact of U.S. President

Donald Trump

’s sweeping levies, which cost the company US$800 million in its fiscal third quarter alone. Trump has long criticized Apple for its reliance on overseas production partners, at one point even threatening to punish the company with tariffs if it didn’t make its iPhones in the U.S.

Then, at an event in the Oval Office on Aug. 6, Apple chief executive

Tim Cook

committed to spending an additional US$100 billion on manufacturing in the U.S. Combined with the iPhone maker’s expansion of a long-standing deal with glass-supplier Corning Inc., the risk of additional Trump tariffs were seen as diminishing and the stock took off, soaring 8.7 per cent in August, putting it on pace for its best month since June 2024. The stock fell 0.7 per cent on Tuesday.

“The picture is a lot clearer from a tariff standpoint,” said George Cipolloni, a veteran portfolio manager. Apple “was in Trump’s crosshairs, but Cook kissed the ring and now it no longer seems to be, which removes a headwind.”

It’s been a strange stretch for Apple. The stock has been a reliable winner for years, soaring more than 240 per cent from 2020 through 2024, putting it among the 20 best performers in the tech-heavy Nasdaq 100 Index. But this year has been different. Even with its August run, the shares are still down 10 per cent in 2025, putting them among the worst performers in the benchmark.

In addition to tariffs, the company is facing skepticism about its

artificial intelligence

plans and sluggish sales growth. The stock also remains relatively expensive. Even with this year’s selloff, it is trading at 29 times projected earnings, a premium to its average over the past decade of 21 times and to the Nasdaq 100’s multiple of 27.

However, sentiment is clearly improving. Late last month, Apple reported its fastest quarterly revenue growth in more than three years, supported by its iPhone business and strength in the China market.

More importantly, the Cupertino, Calif.-based company is working on a revamped AI strategy that will include robots, a lifelike version of its Siri digital assistant and a smart speaker with a display, Bloomberg News reported two weeks ago. It is also said to be in early discussions about using Google Gemini to power Siri.

“It seems like a lot of concerns have cleared, between Apple giving a good outlook, the tariff situation getting better, and the company getting more serious about AI,” said Irene Tunkel, chief U.S. equities strategist at BCA Research. “All those positives happened one after the other, which is the kind of thing that can give the stock another leg up. I think the momentum is just getting started.”

Wall Street estimates for Apple’s 2026 earnings have risen by 2.1 per cent over the past month, and revenue projections are up 2.9 per cent, according to data compiled by Bloomberg.

Another big risk for Apple remains: a lawsuit brought by the Justice Department against Alphabet Inc. that threatens US$20 billion in annual revenue that Apple gets from Google under a search exclusivity agreement. Judge Amit Mehta of the U.S. District Court in Washington is expected to issue a ruling this month.

Despite improving sentiment, Wall Street remains much less enthusiastic about Apple than its megacap peers. Fewer than 60 per cent of the analysts tracked by Bloomberg recommend buying the stock, the second lowest percentage among the so-called Magnificent Seven group of tech giants, beating only Tesla Inc.

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“It’s hard to call Apple cheap, but a lot of tech looks expensive, and Apple is a poster child for quality,” BCA’s Tunkel said. “If companies like Nvidia take a breather, Apple is a natural place for investors to rotate into.”

—With assistance from Subrat Patnaik, David Watkins and Stephen Kirkland.

Bloomberg.com