Apple Stock Could Surge 20% on US-India Trade Deal

Wedbush, a prominent investment bank, has highlighted the potential benefits for Apple Inc. (AAPL.US) and its supply chain if the United States and India were to reach a comprehensive trade agreement. The firm maintains a "outperform" rating on Apple, with a target price of $270 per share. This optimistic outlook is driven by the significant role India plays in Apple's production of iPhones, which has been a point of contention under the Trump administration.

Daniel Ives, a leading analyst at Wedbush, emphasized in a recent report that if the U.S. and India announce a trade agreement in the coming weeks, Apple and its iPhone supply chain could be among the biggest beneficiaries. The agreement would likely alleviate some of the trade tensions that have affected Apple's operations, particularly in the context of iPhone manufacturing.

The potential trade agreement between the U.S. and India is seen as a positive development for Apple's supply chain. India's strengths in technological talent and infrastructure are expected to further bolster Apple's production capabilities. This could lead to increased efficiency and cost savings for the tech giant, as well as enhanced supply chain resilience.

The complex nature of Apple's supply chain, which includes sourcing raw materials, assembly, labor, and machinery, makes it particularly vulnerable to trade disruptions. A trade agreement between the U.S. and India could mitigate these risks, providing a more stable environment for Apple's operations. This stability is crucial for maintaining the company's competitive edge in the global market.

In summary, a trade agreement between the U.S. and India could have a significant positive impact on Apple and its supply chain. The agreement would not only address trade tensions but also leverage India's strengths in technology and infrastructure, potentially leading to long-term benefits for Apple.