Apple’s (AAPL) latest $100 billion investment pledge in the U.S. has drawn praise from Wall Street. Notably, Wedbush’s top-rated analyst, Dan Ives, called it a “good step in the right direction” for Apple. With this investment, the company’s total investments are set to reach $600 billion over the next four years. Following the announcement, AAPL stock jumped more than 5% on Wednesday and extended its gains by nearly 3% in Thursday’s pre-market trading.
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As part of the investment, Apple is collaborating with major suppliers to manufacture components for its devices in the U.S.
Dan Ives Applauds Apple’s U.S. Commitment
According to Ives, Apple’s latest investment would help the company get on “Trump’s good side” after months of strained relations between the two.
Earlier this year, Ives described Apple’s U.S. investment as a smart strategy to expand its manufacturing footprint across the country. He added that the move aligns well with Trump’s push for increased domestic investment. At the time, Ives also noted that Apple’s Tim Cook isn’t just a CEO; he’s also a skilled political player.
The Other Side of the Story
While the investment is notable, a few analysts say Apple’s latest pledge is consistent with its usual spending and past commitments under both Biden and Trump. Moreover, Cook’s latest investment is seen as a strategic move to prevent Trump from imposing new tariffs that could hike iPhone and computer prices. Ultimately, Cook had little choice but to back Trump’s plans, a move widely dubbed online as “bending the knee.”
Moreover, analysts broadly agree that making iPhones in the U.S. is impractical, given high labor costs and the complicated global supply chain.
Is Apple Stock a Good Buy?
On TipRanks, AAPL stock has a consensus Moderate Buy rating among 28 Wall Street analysts. That rating is based on 15 Buys, 12 Holds, and one Sell assigned in the last three months. The average AAPL price target of $233.10 implies a 41.35% upside from current levels.
