Nothing like $100 billion to make everybody forget about the AI elephant within the room for Apple. CEO Tim Cook, saying on the White House on Wednesday afternoon a large, new funding in U.S. manufacturing, showcased the corporate’s energy in navigating the political waters of the Trump administration to mitigate tariff headwinds. The handshake shifted the main focus from Apple’s perceived weak spot in developing with a clear synthetic intelligence technique. “People were really viewing this until yesterday as an AI play, meaning they didn’t have AI,” Jim Cramer mentioned Thursday as Apple shares jumped for a second straight session, including roughly 3% to Wednesday’s 5% acquire. While the two-day transfer has actually been a step in the best path, Apple shares have been nonetheless down simply over 12% yr thus far. Apple’s new dedication of $100 billion on prime of the already-pledged $500 billion over the following 4 years is a “very significant expansion,” Jim mentioned. “This is how the supply chain starts” within the U.S. Apple additionally mentioned it could spend $2.5 billion to assist develop Corning , the Kentucky-based firm that manufactures glass for iPhones. As a outcome, all of the glass for each its flagship system and the Apple Watch shall be produced domestically at Corning’s manufacturing facility. “This is the largest investment Apple has ever made in America and anywhere else,” Trump mentioned 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 efficiency Another constructive of Apple’s elevated investments, based on Jim, is that smartphone rival Samsung might now face an elevated tariff price if the South Korean electronics big would not make investments extra within the U.S. Jim mentioned that will be “very, very good news” for Apple throughout 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 inventory greater Thursday, it doesn’t suggest that the corporate is out of the woods on synthetic intelligence. Management has not solely delayed the rollout of its AI suite, known as Apple Intelligence, however the firm has continued to lose prime expertise to different Big Tech names like Club holding Meta Platforms . Apple’s generative AI technique has been prime of thoughts for traders in hopes that the brand new tech would usher in a much-needed improve cycle for the iPhone, its greatest cash maker. So far, that has not been the case. AI just isn’t Apple’s solely overhang. It additionally faces a collection of authorized complications, together with a authorities antitrust case towards Alphabet that threatens billions of {dollars} in funds to Apple for Google search precedence. Apple’s long-standing authorized feud with Fortnite maker Epic Games has put App Store commissions in focus. Both of those elements may weigh on Apple’s essential high-margin providers enterprise. Bottom line Overall, we’re glad that Apple has taken the steps essential to get again within the good graces of the Trump administration. Cook did it throughout President Donald Trump ‘s first time period, and he did it once more this time. The deal helps Apple on the tariff entrance, giving the corporate and its struggling inventory a much-needed win. That mentioned, getting AI proper remains to be an necessary a part of the Apple story. Jim mentioned he’s prepared to attend and would not view the two-day rally as a motive to trim the place. “I don’t want to sell Apple,” Jim added. Yet once more, we’re reiterating our “own, don’t trade” thesis on Apple inventory. After all, as Jim claimed earlier this summer season, Apple continues to make “the greatest product in the world.” The Club at present has a hold-equivalent 2 score on Apple shares and a worth goal of $240, a roughly 12% premium to Wednesday’s closing degree of $213. The inventory closed at a document $259 per share again in late December. (Jim Cramer’s Charitable Trust is lengthy AAPL, META. See right here for a full record of the shares.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll obtain a commerce alert earlier than Jim makes a commerce. Jim waits 45 minutes after sending a commerce alert earlier than shopping for or promoting a inventory in his charitable belief’s portfolio. If Jim has talked about a inventory on CNBC TV, he waits 72 hours after issuing the commerce alert earlier than executing the commerce. 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.