Apple (NASDAQ:AAPL) on Wednesday announced a new $100 billion commitment to increase investments in the U.S., bringing the company's total commitment up to $600 billion.
As part of the expanded commitment, Apple announced a $2.5 billion investment to produce all of the cover glass for iPhones and Apple Watches in Corning's manufacturing facility in Kentucky. The commitment ensures that 100% of cover glass for iPhones and Apple Watches will be made in the U.S.
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Wedbush analyst Daniel Ives reiterated Apple with an Outperform and a $270 price forecast on Wednesday.
Ives sees Apple's new $100 billion U.S. investment as a strategic move to ease tensions with the Trump administration and secure long-term growth amid rising tariff pressures.
The investment brings Apple's planned U.S. investment to $600 billion over the next four years, including 20,000 new jobs.
Ives highlighted Apple's American Manufacturing Program as a key initiative aimed at strengthening domestic supply chains. The program has expanded partnerships with Corning (NYSE:GLW), Coherent (NYSE:COHR), and MP Materials (NYSE:MP).
He views the move as a timely response to geopolitical headwinds and notes that CEO Tim Cook has skillfully balanced diplomacy and leadership, calling him "10% politician and 90% CEO."
While Ives acknowledged Apple's improved positioning with Trump after months of friction, he maintained skepticism about mass-producing iPhones in the U.S., calling it "a fairy tale" due to unfavorable cost structures compared to Asia and India.
Ives expects Apple to continue investing in AI, Macs, U.S. manufacturing infrastructure, and services, but not domestic iPhone production.
He projects Apple will produce over 19 billion U.S.-made chips in 2025 through partnerships with GlobalWafers, Taiwan Semiconductor Manufacturing Co (NYSE:TSM), Texas Instruments (NASDAQ:TXN), Applied Materials (NASDAQ:AMAT), and Samsung (OTC:SSNLF). Despite lingering challenges, Ives considers the announcement a positive step for Apple, helping stabilize investor sentiment and improving the company's standing with the White House.
Ives projected fourth-quarter revenue of $101.40 billion and EPS of $1.76.
AAPL Price Action: Apple stock is trading higher by 2.70% to $219.00 at last check Thursday.
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