Up 13% in a single week, Cook once again secured a deal with Trump, and Apple achieved its best weekly performance since July 2020

Apple Inc. successfully resolved the imminent tariff threat through textbook-style political maneuvering, and its stock price recorded its best weekly performance in four years. According to Wall Street Journal, on Wednesday, Trump announced alongside Apple CEO Tim Cook in the Oval Office that Apple would add an additional $100 billion investment to its previously announced $500 billion four-year spending plan in February, launching a new American Manufacturing Plan (AMP) to bring more supply chains and advanced manufacturing processes to the U.S., aiming to establish a complete end-to-end semiconductor chip supply chain. By committing to significant investments in the U.S., Cook not only earned Trump's public praise but, more importantly, Apple will be exempt from future tariffs that could potentially double the price of imported chips due to its factory construction in the U.S. Despite the grand investment plan, specific details remain vague. Cook acknowledged that the "final assembly" of the iPhone will still take place overseas in the short term, and Trump also stated that establishing a complete iPhone production line in the U.S. is not a short-term goal. Boosted by this significant positive news, Apple's stock price soared 13% this week, marking the largest weekly increase since July 2020. As of Friday's close, its stock price rose 4% to $229.35, with a weekly market value increase of over $400 billion, bringing its total market value to $3.4 trillion, solidifying its position as the third-largest company in the world by market value, behind Nvidia and Microsoft. (Apple's stock price breaks through the downward trend line since the end of last year) From "rotten apple" to market star Just before this week's dramatic turnaround, Apple's stock performance had been weak. In the three months leading up to this week, Apple's 90-day rolling performance lagged the Nasdaq index by about 20 percentage points, marking one of the weakest relative performance periods in the past 20 years. Market sentiment was once extremely pessimistic. Relevant technical analysis showed that Apple's stock price had been consistently running below the 200-day moving average (blue line) and was approaching the key support level in the $195 to $200 range. Additionally, data indicated that relative to Microsoft, Apple's stock performance was poor, even falling back to the low levels seen in April 2020 at the onset of the COVID-19 pandemic. This extreme "washout" market sentiment has created conditions for a strong rebound this week, with many market observers viewing it as a typical "oversold rebound trade." As of Friday's close, market pressure was quite significant, with investors heavily buying options. On Thursday, the volume of call options reached 1.2 million contracts, while the 20-day average volume was 635,000 contracts. This week, Apple's stock price rose more than 10% above the Nasdaq, reaching a five-year high. Familiar Script: Avoiding Tariff Risks with Investment Commitments Publicly announcing large investment plans to mitigate political risks has become a mature template for Apple to respond to pressure from the U.S. government. As early as during Trump's first term in 2018, Apple committed to investing $350 billion in the U.S. economy over five years, successfully avoiding product tariffs at that time. In November 2019, Trump and Cook jointly visited Apple's supplier Flex's factory in Texas, responsible for producing the Mac Pro. Although the factory had been operational since 2013, Trump still hailed it as the beginning of "a very powerful and important factory" and called it "a very special day." Today, Apple's newly announced $100 billion investment commitment is widely viewed on Wall Street as another shrewd political strategy. Despite doubts about the authenticity and details of Apple's massive investment figures, Wall Street generally believes that Apple exchanged public support for U.S. manufacturing for exemptions from potential punitive tariffs, thereby winning political favor without "breaking the bones" of its global supply chain. From a business and investment perspective, Cook's strategy is another clear victory. HSBC noted in a report that Apple's plan "supports a scenario where the status quo is maintained, meaning Apple's profits will not be further harmed." "Apple will not assemble products in the U.S.," said Gene Munster of asset management firm Deepwater Asset Management, "which is good news for investors as it means profit margins will remain stable in the coming years." Bank of America analyst Wamsi Mohan believes that if competitors face tariffs while the iPhone is exempt, Apple is likely to further increase its market share in the U.S. smartphone market. Fundamentals and Future Outlook Cook's successful visit to the White House is built on Apple's solid fundamentals. According to Wall Street News, on July 31, Eastern Time, Apple just released its June quarter earnings report, which crushed expectations, showing an overall revenue growth of 10% and a 13% increase in iPhone sales Apple's Chief Financial Officer (CFO) Luca Maestri stated that last quarter, the number of active devices installed across various regions reached an all-time high. Looking ahead, the market generally expects Apple to release the iPhone 17 series in early September 2025. Analysts believe that based on historical data, Apple's stock price rose over 10% in the month leading up to last year's new product launch event, providing a reference pattern for future stock price trends. Additionally, although Apple currently seems to lag in the field of artificial intelligence, Cook previously held an all-hands meeting to reassure employees, stating: We rarely do things first, but Apple will take control of AI. Some analysts point out that Apple's latecomer potential should not be underestimated. Historically, the company has often been a "follower" in certain areas of innovation, but has achieved success through its strong distribution network and ecosystem