Apple has unveiled its largest-ever investment program in the US, committing over $500 billion over the next four years. The plan aims to drive American innovation and advanced high-skilled manufacturing, focusing on areas like AI, silicon engineering, and workforce development.
As part of this initiative, Apple plans to establish a new manufacturing facility in Houston to produce servers essential for its Private Cloud Compute. This will help power its Apple Intelligence and integrate advanced AI processing with sophisticated security architecture.
The company is also expanding its US Advanced Manufacturing Fund, doubling its investment to support the training of future American manufacturers. Additionally, it plans to ramp up R&D efforts in emerging technologies and hire around 20,000 new employees over the next four years, mostly focused on R&D, silicon engineering, software development, and AI/ML.
The move is seen as a strategic decision by CEO Tim Cook, aiming to diversify Apple’s manufacturing strategy while playing well into Trump’s US investment theme. Wedbush analyst Daniel Ives praises this approach, saying it will help ensure smoother waters for Apple ahead despite market uncertainty.
While the plan marks a shift from Apple’s traditional reliance on China for manufacturing and supply chain operations, Ives notes that this is not an indication of any changes to its China region focus. The analyst maintains an Outperform rating and $325 price target, suggesting investors could see returns of 32% if the target is met.
The Street’s average target price is lower at $250.95, indicating a rangebound market for Apple shares. However, with 18 Buys, 11 Holds, and 4 Sells, the analyst consensus views this stock as a Moderate Buy.
Source: https://www.tipranks.com/news/article/apples-u-s-investment-is-a-canny-move-says-daniel-ives