<div id="readability-page-1"><p>Shares of <strong>Apple</strong> <span>(AAPL<span> 4.33%</span>)</span> traded nearly 4.3% higher as of 2:35 p.m. ET today. Analysts are more optimistic that the company has squashed some of the tariff drama with President Donald Trump's administration.</p> <h2>Investing $600 billion in America will pay off for shareholders</h2> <p>Many large tech companies have been in the crosshairs of the Trump administration, which seeks to bring more manufacturing back to the U.S. Trump recently announced that he would slap a 100% tariff on semiconductor imports unless companies are building or investing in the U.S.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Mjg3MDEvcG9zaXRpdmUtcGVyc29uLTMuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84Mjg3MDEvcG9zaXRpdmUtcGVyc29uLTMuanBnJnc9NzAw"/></p><p>Image source: Getty Images.</p> </div> <p>Earlier this week, Apple, which is one of the hardest-hit large tech companies by tariffs, announced a $600 billion U.S. investment. While it sounds costly, it's the better alternative to higher tariffs, Melius Research analyst Ben Reitzes wrote in a note today. Reitzes also reiterated a buy rating on the stock and raised his price target by $20 to $260.</p>  <p>&#34;It relieves Apple from paying incremental tariffs on U.S.-bound iPhones from India,&#34; Reitzes said, adding that a stronger iPhone production cycle could begin in the fall. &#34;We are going to take a risk here and raise our target and our numbers, taking out a huge portion of our tariff hits.&#34;</p> <h2>One problem potentially solved</h2> <p>Apple's stock has struggled this year because of how much of the company's production is abroad in China, India, and Vietnam. Even after the big run this week, shares are still down about 5.5% on the year.</p> <p>The company has also struggled to convince investors that it has a strong road map in place for artificial intelligence. While that challenge remains, removing some of the tariff overhang is certainly a big step in the right direction and allows the company to focus more on its core business.</p>                                                                            </div>

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<p>Shares of Apple surged nearly 4.3% today, driven by optimism over the company's $600 billion investment in the U.S., which analysts believe mitigates tariff impacts from the Trump administration. Melius Research's Ben Reitzes reiterated a buy rating and raised the price target to $260, citing relief from tariffs on U.S.-bound iPhones. Despite the recent gains, Apple's stock is still down about 5.5% this year, facing challenges in production and artificial intelligence strategy.</p>

- Apple shares rose nearly 4.3% amid optimism over the company's $600 billion investment in the U.S., which may alleviate tariff pressures from the Trump administration.  
- Analysts believe this investment will help Apple avoid additional tariffs on U.S.-bound iPhones and potentially strengthen its production cycle.  
- Despite the recent gains, Apple's stock is still down about 5.5% for the year, as the company faces challenges in production and investor confidence in its artificial intelligence strategy.  

Why Shares of Apple Are Surging Today