Apple Inc. (AAPL): Exempt from Tariffs, But Concerns Remain

We recently published a list of 10 AI Stocks to Watch Amid Market Volatility. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other AI stocks to watch amid market volatility.

The uncertain macroeconomic environment is diminishing investors’ readiness to pay high prices for stocks related to artificial intelligence. Despite the continued buzz around the technology, no one seems interested in buying the falling stocks. Fluctuating tariff policies from the Trump administration have concerned Wall Street and disrupted global supply chains. The cost of AI infrastructure has increased drastically, especially for companies relying on imported components.

READ ALSO: 14 AI Stocks Catching Wall Street’s Attention and  9 Trending AI Stocks Making Headlines Today.

The narrative around AI stocks has also begun to change because investors are critiquing that prices have become too expensive, and because there is intensifying competition from Chinese companies developing their own AI offerings.

In the latest news, seven Republican U.S. senators have also sent a letter to U.S. Commerce Secretary Howard Lutnick. The letter urges him to get rid of a Biden administration rule that restricts global access to AI chips before it kicks in next month. The letter claims that the AI diffusion rule will deter U.S. leadership in artificial intelligence, which is why it demands an “immediate action” to halt it. The rule is set to take effect on May 15.

“Every day this rule remains in place, American companies face mounting uncertainty, stalled investments, and the risk of losing critical global partnerships that cannot be easily regained. We urge you to withdraw this rule and propose an alternative that is effective in preventing Communist China from capturing the world market in leading technology without compromising American advantages.”

-The letter, also signed by senators Markwayne Mullin, Ted Budd, Roger Wicker and Eric Schmitt.

It also noted how the rule puts countries into three tiers, with only 18 nations in the Tier 1 group with the easiest access to American technology. Those in tier 2 have to face “arbitrary purchase limits and a cumbersome licensing process.” Meanwhile, it asserted that Tier 3 countries are already “rightly restricted.”

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points  (see more details here).

Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Apple Inc. (NASDAQ:AAPL) is a technology company. On April 14, JPMorgan lowered the firm’s price target on the stock to $245 from $270 and kept an “Overweight” rating on the shares. The firm expressed its relief after Trump recently announced that the reciprocal tariffs will exempt smartphones and PCs. The analyst told investors in a research note how these exemptions will help investors refocus on the company’s medium-term drivers. Regardless, “several concerns” remain from the developments over the last two weeks that will inhibit these very investors from turning to a bull case for Apple stock. The firm further announced that semiconductor tariffs are yet to be announced and could impact Apple.

Overall, AAPL ranks 5th on our list of AI stocks to watch amid market volatility. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.