Why Apple's Best Week since 2020 is Too Good to be True

If Apple (AAPL) CEO Tim Cook did not announce another $100 billion in capital expenditures in the U.S., shares would have suffered an 8% decline in 2025.

Last week, AAPL stock gained 13%, its biggest weekly gain in over five years. Investors flocked back to the company after the CEO met with President Trump in the White House on August 6. Apple investors benefited from the market capitalization, adding over $400 billion, to $3.4 trillion.

Apple committed to spending $100 billion on U.S. firms in the next four years. This might include companies like Corning (GLW). However, Corning is already supplying glass to Apple’s devices at 100%. It is not clear how Apple would invest in domestic companies.
The blockbuster announcement negates Apple’s warning in July that tariffs would cost it over $1 billion.

In the third quarter, Apple iPhone sales increased by 13% Y/Y, pushing revenue growth up by 10%. This is the fastest growth rate since December 2021. Consumers who previously delayed iPhone upgrades decided to avoid tariffs. The front-loading in sales might lead to a slowdown in device sales in future quarters.

Apple needs to announce upgrades to the next iPhone to drive sales. Rumors are circulating that Apple will come out with a folding phone. Samsung (SSNLF) has offered clam-shell-shaped flip smartphones for several years already. China’s Huawei offered a tri-fold phone since September 2024.

Apple’s rally looks too good to be true. The company needs to report another strong iPhone sales quarter to justify the 13% weekly gain.