Apple shares staged a rebound on Tuesday, after days of relentless selling that saw the tech giant’s market value tumble by $638 billion as investors appeared to take solace in hints of potential trade negotiations that could ease the tension.
The stock rose by 4.5% in early trading; however, later in the day, it gave up most of the gains and was seen rising by only over 1.7%.
The surge came as broader US markets also found relief, with hopes pinned on further diplomatic overtures aimed at cooling the increasingly aggressive rhetoric from the Trump administration.
Apple’s bounce, however, remains set against a broader backdrop of ongoing challenges.
The stock is still down nearly 14% over the past five days and close to 17% over the past month.
Apple’s exposure to China puts it in the crosshairs of the trade dispute, with analysts warning that the company’s supply chain vulnerabilities are among the highest in the tech sector.
China has also retaliated to US tariffs with 34% levies on American goods, further escalating trade tensions even as other countries have reached out to the US for negotiations.
The postponement of certain Siri features within Apple intelligence has also weighed on the Apple stock.
Analysts see silver lining in Apple’s battered valuation
Despite the turbulence, some Wall Street voices remain bullish on Apple.
Bank of America Securities on Tuesday reiterated its buy rating on Apple shares, maintaining a price target of $250.
The firm argued that the sharp pullback presents a “particularly enhanced buying opportunity” for investors, as the stock’s price-to-earnings multiple has fallen to around 21 times forward earnings — below the 25 times threshold the bank considers favourable.
“The steep pullback in Apple’s stock price presents “a particularly enhanced buying opportunity for investors to own a high-quality name,” says Bank of America.
BofA emphasised Apple’s robust cash flows, earnings resilience, and the potential upside from integrating artificial intelligence into its devices.
These factors, the firm believes, support a positive risk-reward balance for the stock at current levels.
“While near-term volatility is likely to persist, Apple’s fundamental strengths and attractive valuation provide a compelling case for long-term investors,” BofA noted.
Apple stock: supply chain risks and pricing pressures
Yet not all analysts are equally sanguine.
Daniel Ives of Wedbush Securities, a long-time Apple bull, trimmed his price target from $325 to $250, citing what he called President Trump’s “tariff Armageddon.”
He acknowledged Apple’s efforts to diversify manufacturing to countries like India, Vietnam, and Thailand, but cautioned that over 50% of its Macs and as much as 80% of iPads still come from China.
“The reality is it would take three years and $30 billion to move even 10% of Apple’s supply chain out of Asia,” Ives warned, highlighting the logistical and financial challenges facing the tech giant.
Ben Reitzes of Melius Research drew comparisons between the tariff shock and past market crises such as the 2008 financial meltdown and the Covid pandemic.
He warned that hardware companies may have to raise US prices by as much as 20% to offset tariff impacts, a move that risks alienating price-sensitive customers.
“Apple could see a huge margin hit of several hundred basis points in the US,” Reitzes cautioned, while maintaining a buy rating with a price target of $226.
“They are almost sure to raise prices if tariffs go ahead.”
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