The past few days have been a bright spot for investors in Apple (NASDAQ:AAPL), as the company share price surged upwards by over 6%. While uncertainty regarding the status of the U.S.-China commercial spat continues to reign, the Trump administration seemed to convey a few signals that it was backing down from an all-out trade war.
This included the president’s assertion that he would “be very nice” to China. However, it remains to be seen how this sticky situation will evolve, leaving plenty of unknowns for the market to navigate.
Apple is among those uniquely exposed to rifts between the world’s two largest economies – due to both its profound manufacturing operations in China as well as its sales into China’s vast consumer market. All told, AAPL’s share price is down some 16% year-to-date.
As the company gears up to announce its FY 2025 Q2 results, analysts and investors alike will be looking for signs into how the company plans to address these threats to its future revenues and earnings.
One top investor known by the pseudonym The Value Portfolio thinks AAPL will give investors plenty of reason for good cheer.
“The company’s focus on core strengths and innovative potential makes it a valuable investment opportunity,” says the 5-star investor, who is among the top 2% of TipRanks’ stock pros.
Value Portfolio predicts that AAPL – which historically has beaten earnings – will once again surpass expectations. The investor notes that Apple was able to ship out 1.5 million iPhones to the U.S. ahead of the Trump tariff announcement, which should contribute to the positive surprise.
Moreover, Value Portfolio points out that it is likely that a healthy number of consumers have already upgraded their iPhones in anticipation of tariff-related price increases. However, the investor also cautions that some of these purchases might only be felt in the current quarter.
Acknowledging the slowing Greater China sales, Value Portfolio reminds investors that Apple experienced year-over-year growth in every other market during FY 2025 Q1. In that vein, the investor also takes solace in the fact that Apple enjoyed increases in its Mac, iPad, and Services segments.
In addition, Apple’s large breadth is a major asset, according to Value Portfolio, who also believes that the company will succeed in shifting manufacturing to avoid the worst impacts of any potential tariffs.
“The company continues to have a diversified portfolio of assets, and it has shown an ability to continue its growth despite its immense size,” concludes The Value Portfolio, who rates AAPL a Buy. (To watch The Value Portfolio’s track record, click here)
Wall Street is also ready to take a bite out of the AAPL. With 19 Buy, 13 Hold, and 3 Sell ratings, AAPL enjoys a Moderate Buy consensus rating. Its 12-month average price target of $236.47 has an upside of ~13%. (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.