Wells Fargo Stays Bullish on Apple (AAPL) Amid $100B U.S. Expansion Plan

Apple Inc. (NASDAQ:AAPL) is one of the Hot AI Stocks on Wall Street’s Radar. On August 7, Wells Fargo analyst Aaron Rakers reiterated an Overweight rating on the stock with a $245.00 price target. The rating affirmation follows Apple’s recent announcement that it is increasing its investment in the United States by $100B to $600B over the next four years.

Apple announced that it will be making major investments across its multiple top suppliers, including a $2.5B deal with Corning and a multi-year deal with Coherent.

 “Apple previously announced in February that it would spend $500B over the next 4 years. The announcement reiterated the company’s plan for a major AI server facility in Houston. In addition to Corning and Coherent, Apple’s press release highlights partnerships with Broadcom, GlobalWafers, TSMC, Texas Instruments, Applied Materials, GlobalFoundries, and Amkor. Apple also emphasized its focus on building out its US data center footprint, building on an already $5B investment in Maiden, North Carolina; also noting expanding data center capacity in Iowa, Nevada, and Oregon”.

The firm believes that the said announcement aims to strike a deal to minimize tariff impacts.

“Apple’s announcement of an additional $100B investment in the US will (should) be viewed as more about posturing/a deal to minimize tariff impacts, i.e., companies committed to building in the US would be exempt from tariffs,” -Analysts led by Aaron Rakers.

According to Rakers and his team, President Trump discussed plans of imposing 100% tariffs on imports of semiconductors. However, he added that “the good news for companies like Apple is if you’re building in the United States or have committed to build, without question, committed to build in the United States, there will be no charge.”

The analysts further noted that Apple’s announcement has made no reference that they are bringing final iPhone assembly into the U.S.

Apple is a technology company known for its consumer electronics, software, and services.

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