If anything is clear from the past half year, President Trump certainly holds the power to move markets, shift supply chains, and change investment strategies. Apple (NASDAQ:AAPL)’s announcement of another $100 billion in U.S. investments is yet another example.
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This pushes the amount of Apple’s committed investments in the U.S. to $600 billion over the next four years. Many are viewing the move – announced in the Oval Office alongside the president – as a peace offering to a Trump administration that continues to wield the tariff threat against overseas manufacturing.
So far, the market seems to be receptive to this strategy, and AAPL’s share price is up some 7.5% in the days following the announcement. One top investor known by the pseudonym Stone Fox Capital is not so convinced, however, calling the announcement “$600 billion noise” that still doesn’t solve a larger problem for the company that continues to loom overhead.
“The bigger issue for Apple is the lack of a working AI strategy,” explains the 5-star investor, who is among the top 3% of TipRanks’ stock pros.
Stone Fox further details that the onshoring move to bring production into the U.S. does not address Apple’s AI innovation issues, which are becoming more acute. The investor cites Meta’s AI-powered smart glasses ambitions, seen as a potential replacement for smartphones, as a clear and present danger for Apple’s market share.
“The combination of AI and smart glasses is definitely a potential BlackBerry moment for Apple, and the company has shown no signs the last few years of being able to innovate out of this oncoming train,” adds Stone Fox.
Another big concern for the investor is the “limited” growth story, with FY 2026 and 2027 sales growth in the mid-single digits. The recent bump is therefore an opportunity for investors to take profits, suggests Stone Fox, who predicts some turbulent skies ahead.
“Until Apple solves the AI issue and gets back to innovating, the company will have a difficult time growing,” concludes Stone Fox Capital. “The stock is open to substantial downside on ongoing AI failures.”
Stone Fox Capital is rating AAPL a Strong Sell. (To watch Stone Fox Capital’s track record, click here)
Suffice it to say, Wall Street has the opposite viewpoint. With 16 Buys, 12 Holds, and a solitary Sell, AAPL enjoys a consensus Moderate Buy rating. Its 12-month average price target of $235.14 implies minimal movement in the year to come. (See AAPL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.