Apple shares climbed 3.3% in Thursday’s premarket after President Donald Trump confirmed the company’s investment of $100 billion in U.S. manufacturing. The announcement was delivered at the White House alongside Apple CEO Tim Cook. It comes as the administration begins rolling out the One Big Beautiful Bill aimed at encouraging domestic investment and production.
The move helped boost confidence in the tech sector broadly, with chipmakers and manufacturing partners of Apple also seeing sharp gains. Investors are betting that tariff exemptions and aggressive tax reforms will significantly improve corporate cash flow and earnings over the coming year.
What is the One Big Beautiful Bill?
The One Big Beautiful Bill, signed into law earlier this summer, is a landmark pro-growth tax package that includes:
- Full expensing for U.S.-based capital expenditures and new factories
- Permanent expensing for domestic R&D investments
- The largest corporate tax cut in U.S. history
- Bonus depreciation and investment incentives for qualifying U.S. businesses
The bill’s central goal is to reward companies that commit to manufacturing, innovation, and hiring within the United States. According to the White House, the legislation is already reshaping investment patterns across multiple sectors.
Major U.S. companies cite the bill in earnings calls and forecasts
A growing list of S&P 500 firms have named the One Big Beautiful Bill as a key catalyst for increasing capital investment and boosting long-term earnings:
Apple Inc.
CEO Tim Cook: “This investment underscores our commitment to the American economy and workforce. The environment created by this legislation gives us the clarity and runway we need to build here at scale.”
AT&T
Projected $8 billion in cash savings over two years
CEO John Stankey: “We intend to invest more rapidly in next-generation networks and contribute $1.5 billion to our pension plan by the end of next year.”
Johnson & Johnson
CFO Joseph Wolk: “We are pleased that the bill provides certainty for our $55 billion in planned U.S. manufacturing investments. Permanent expensing of production property is vital.”
Northrop Grumman
CFO Ken Crews: “Tax reform was a positive change. We expect a cash benefit between $200 million and $250 million this year.”
Booz Allen Hamilton
CFO Matt Calderone: “We’re raising our cash flow outlook by $200 million due to R&D expensing provisions in the bill.”
United Rentals
CFO Ted Grace: “We’re increasing share repurchases by $400 million, largely because of tax-driven free cash flow gains.”
PACCAR Inc.
CEO Preston Feight: “Customers are already responding positively. The new law gives them the flexibility to invest in assets like trucks.”
Disney
CFO Hugh Johnston: “We expect a further boost to earnings due to the improved cash tax position. It’s a positive for long-term growth.”
Analysts estimate $148 billion in cash savings
The Wall Street Journal reports that among 369 companies in the S&P 500, tax savings from the bill will total approximately $148 billion—equivalent to 8.5% of projected full-year free cash flow. Analysts expect that much of this capital will be used for reinvestment, debt repayment, stock buybacks, and job creation.
Amazon and Meta could benefit substantially, with potential tax savings of $15.7 billion and $11 billion, respectively, according to Zion Research.
Apple’s partners and chipmakers rally on tariff relief
Apple’s announcement was not the only market-moving headline. President Trump also confirmed that the new 100% tariff on semiconductor imports will not apply to companies building in the U.S. or already committed to do so.
That clarification sparked a tech rally:
- Advanced Micro Devices (AMD): +2.5%
- Intel (INTC): +2.1%
- Nvidia (NVDA): +1.1%
- Applied Materials (AMAT): +10.1%
- Texas Instruments (TXN), GlobalFoundries (GFS), Broadcom (AVGO): All gained between 0.8% and 5%
European chipmakers joined in, with ASML, ASMI, and BE Semiconductor up about 3% each. TSMC, which makes chips for Nvidia and Apple, closed 5% higher—hitting a new all-time high.
Global supply chains shift toward U.S. manufacturing
Samsung and SK Hynix, both of which have manufacturing operations in the U.S., were also spared from tariffs. South Korea’s trade envoy confirmed the exemption, noting investments in chip fabrication plants in Texas and AI R&D centers in Indiana.
The administration says the new tariff framework is designed to force realignment of the global chip supply chain. Countries like the Philippines and Malaysia have requested clarification amid concerns that they may lose access to the U.S. market if their exports are not exempt.
Wall Street and the White House see alignment—for now
The combination of tariff relief, tax cuts, and a clearer regulatory path has created a rare moment of alignment between corporate America and the federal government. UBS analysts noted that “a major uncertainty has been removed” and said investors are responding with “renewed clarity and conviction.”
Still, geopolitical risks and supply chain pressure remain. Trump’s strategy of “open high, negotiate down” could mean additional policy shifts in the coming months.
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