Almost two months after Donald Trump’s “creative tariffs plan” was announced, the stock market has largely moved on. Most major tech stocks have not only recovered but are thriving, buoyed by the AI hype, strong earnings, and a growing belief that the most severe aspects of the tariff plan may not materialize. However, Apple remains significantly in the red.
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Since Trump’s April 2nd announcement, shares of Amazon (+7%), Google (+8.8%), Meta (+10%), Microsoft (+20.2%), and Nvidia (+26.3%) have all erased their initial losses and posted substantial gains. In stark contrast, Apple’s stock is still down more than 10%. This divergence on Wall Street directly reflects the market’s perception of Apple’s unique vulnerability in the current geopolitical and economic climate.
Initially, Trump’s tariff announcement caused a dip across much of Big Tech, which was expected given their reliance on China. However, other tech giants quickly found new reasons to rally, leveraging excitement around generative AI, robust cloud services, and promising new product cycles.
Apple, on the other hand, continues to grapple with the repercussions of the ongoing trade tensions with China. The company is under pressure to convince investors that its efforts to diversify manufacturing to India, Vietnam, and Brazil will actually yield results. Adding to its woes, Apple is now contending with Trump’s recently soured sentiment towards CEO Tim Cook. As the concept of a “U.S.-assembled iPhone” becomes a political talking point for the Trump camp, shareholders, including those of key Apple suppliers like Luxshare and Goertek (whose shares have dropped almost 10%), are understandably on edge.
It’s worth noting that a U.S. trade court recently struck down much of Trump’s April 2 tariff package, ruling that it exceeded presidential authority. While the White House appeals and the legal battle drags on, the mere uncertainty is enough to keep weighing disproportionately on Apple’s stock compared to its peers.
A significant factor contributing to Apple’s stock underperformance is its perceived absence from the dominant AI narrative. Amazon, Google, Meta, Microsoft, and Nvidia are all riding high on the AI boom, with recent AI-focused events providing investors with clear insights into how these companies will directly benefit—whether through cloud services, advanced chips, developer platforms, or new AI-powered subscription bundles.
As for Apple, until the company clearly demonstrates its AI strategy and, crucially, how AI will drive future revenue, Wall Street appears to be discounting its role in the AI story. Without this crucial momentum, Apple is left to fight an uphill battle against broader macroeconomic headlines and geopolitical risks.
However, this situation could change rapidly in the coming weeks. With WWDC just around the corner, and if the courts permanently halt Trump’s tariff plan, Apple’s stock could see a significant rally and begin to catch up with its tech counterparts. For now, however, Apple finds itself in a uniquely uncomfortable position: lacking a compelling AI narrative, facing ongoing challenges with its China supply chain, and seemingly out of favour with the Oval Office.
