Nothing like $100 billion to make everyone forget about the AI elephant in the room for Apple. CEO Tim Cook, announcing at the White House on Wednesday afternoon a big, new investment in U.S. manufacturing, showcased the company’s strength in navigating the political waters of the Trump administration to mitigate tariff headwinds. The handshake shifted the focus from Apple’s perceived weakness in coming up with a clear artificial intelligence strategy. “People were really viewing this until yesterday as an AI play, meaning they didn’t have AI,” Jim Cramer said Thursday as Apple shares jumped for a second straight session, adding roughly 3% to Wednesday’s 5% gain. While the two-day move has certainly been a step in the right direction, Apple shares were still down just over 12% year to date. Apple’s new commitment of $100 billion on top of the already-pledged $500 billion over the next four years is a “very significant expansion,” Jim said. “This is how the supply chain starts” in the U.S. Apple also said it would spend $2.5 billion to help expand Corning , the Kentucky-based company that manufactures glass for iPhones. As a result, all the glass for both its flagship device and the Apple Watch will be produced domestically at Corning’s factory. “This is the largest investment Apple has ever made in America and anywhere else,” Trump said alongside Cook. “As you know, Apple has been an investor in other countries a little bit, I won’t say which ones, but a couple, and they’re coming home.” AAPL YTD mountain Apple (AAPL) year-to-date performance Another positive of Apple’s increased investments, according to Jim, is that smartphone rival Samsung may now face an increased tariff rate if the South Korean electronics giant doesn’t invest more in the U.S. Jim said that would be “very, very good news” for Apple during Thursday’s Morning Meeting. “In the United States, there’s a dogfight between Samsung and Apple,” Jim continued. “Remember, we were thinking, ‘Oh my God, Samsung’s going to be cheaper than Apple.’ No. Apple will be cheaper than Samsung, and that will push even more Verizon, AT & T , and T-Mobile [customers] toward Apple.” While the market continued to push Apple stock higher Thursday, it doesn’t mean that the company is out of the woods on artificial intelligence. Management has not only delayed the rollout of its AI suite, called Apple Intelligence, but the company has continued to lose top talent to other Big Tech names like Club holding Meta Platforms . Apple’s generative AI strategy has been top of mind for investors in hopes that the new tech would usher in a much-needed upgrade cycle for the iPhone, its biggest money maker. So far, that has not been the case. AI is not Apple’s only overhang. It also faces a series of legal headaches, including a government antitrust case against Alphabet that threatens billions of dollars in payments to Apple for Google search priority. Apple’s long-standing legal feud with Fortnite maker Epic Games has put App Store commissions in focus. Both of these factors could weigh on Apple’s crucial high-margin services business. Bottom line Overall, we’re glad that Apple has taken the steps necessary to get back in the good graces of the Trump administration. Cook did it during President Donald Trump ‘s first term, and he did it again this time. The deal helps Apple on the tariff front, giving the company and its struggling stock a much-needed win. That said, getting AI right is still an important part of the Apple story. Jim said he is willing to wait and doesn’t view the two-day rally as a reason to trim the position. “I don’t want to sell Apple,” Jim added. Yet again, we’re reiterating our “own, don’t trade” thesis on Apple stock. After all, as Jim claimed earlier this summer, Apple continues to make “the greatest product in the world.” The Club currently has a hold-equivalent 2 rating on Apple shares and a price target of $240, a roughly 12% premium to Wednesday’s closing level of $213. The stock closed at a record $259 per share back in late December. (Jim Cramer’s Charitable Trust is long AAPL, META. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
How a $100 billion pledge helped Wall Street forget about Apple’s AI problems — for now
