Apple Will Invest $500M in the U.S. to Avoid President Trump’s Tariffs

Apple (AAPL) will invest $500 million in the U.S. over the next four years to increase its manufacturing capabilities. This will see it expand its teams in Michigan, Texas, California, Arizona, Nevada, Iowa, Oregon, North Carolina, and Washington.

Adding to this are Apple’s plans to open a new factory in Texas. This new factory will focus on server creation to power Apple Intelligence, the company’s personal intelligence system. Other investments will include doubling its U.S. Advanced Manufacturing Fund from $5 billion to $10 billion, creating a manufacturing academy in Michigan, and accelerated investments in artificial intelligence (AI) and silicon engineering.

Apple CEO Tim Cook said, “We are bullish on the future of American innovation, and we’re proud to build on our long-standing U.S. investments,” and that the company will “keep working with people and companies across this country to help write an extraordinary new chapter in the history of American innovation.”

Apple Will Add 20,000 Jobs

Apple’s $500 million U.S. investment plan also includes expansions to its teams, adding thousands of jobs. On top of that, the company’s new manufacturing factory will also increase its total U.S. workers. The tech giant currently employs over 2.9 million people in the country.

Apple’s decision to invest in the U.S. comes after President Donald Trump started introducing tariffs on foreign goods. There have also been threats of additional tariffs, resulting in many U.S. companies investing in the U.S. to avoid increased prices.

Is AAPL a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Apple is Moderate Buy based on 18 Buy, 11 Hold, and four Sell ratings over the last three months. With that comes an average price target of $250.95, a high of $325, and a low of $188. This represents a potential 2.2% upside for AAPL stock.

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