Apple's 25% Tariff Threat: Expect An About-Turn Soon

Uttam Dey
3.07K Followers
(9min)

Summary

  • Apple Inc.'s current tariff headwinds are temporary, with the Trump 2.0 administration's threats unlikely to materialize into significant long-term impact.
  • Apple is skillfully managing supply chain risks by diversifying production to India and Vietnam, mitigating potential tariff exposure.
  • AAPL stock remains undervalued at 25x FY 2026 earnings, offering ~18% upside to a $232 price target as earnings growth accelerates.
  • I reiterate my Buy rating for AAPL stock, confident that fundamental strengths and upcoming catalysts like WWDC will outweigh short-term trade noise.

Dollars and an apple

manfeiyang/iStock via Getty Images

Investment Thesis

Last week’s updates from President Trump 2.0 were just another turn in the “red light, green light” tariffs game that took markets off a different course.

Once again, Trump 2.0’s dialogue took aim at

This article was written by

3.07K Followers
Uttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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