Apple stock rose Wednesday on news that the consumer electronics giant would announce a fresh $100 billion commitment to invest in U.S. manufacturing. President Donald Trump and Apple Chief Executive Tim Cook made the formal announcement at the White House late Wednesday.
The investment pledge comes as the company seeks to avoid punishing U.S. tariffs on its foreign-made iPhones and other devices.
Apple's announcement on Wednesday brings its cumulative commitment to U.S. investment to $600 billion over the next four years.
In February, Apple announced plans to spend $500 billion in the U.S. That commitment included a new server manufacturing facility in Houston, a supplier academy in Michigan and additional spending with its existing suppliers in the country.
Apple's latest announcement includes a new initiative called the American Manufacturing Program. That program is dedicated to expanding Apple's U.S. manufacturing and supply chain operations.
The manufacturing program will help fund an expansion of Apple's long-standing partnership with Corning, bringing the company's smartphone glass production line to Corning's factory in Kentucky.
Apple also announced a new multiyear deal with Coherent, which will produce VCSEL lasers for the iPhone's Face ID feature. Those components will be manufactured at Coherent's Texas facility.
Plus, the program includes Apple's previously announced deal with MP Materials to buy its rare earth magnets and invest in MP's California Mountain Pass Mine.
Apple also is working with chipmakers TSMC, GlobalFoundries and Texas Instruments to make semiconductors for its products in the U.S.
Apple Stock Climbs On U.S. Investment
On the stock market today, Apple stock rose 5.1% to close at 213.25. In after-hours trading, it was up more than 2% to 219.18.
"Today is a good step in the right direction for Apple and it helps get on Trump's good side after what appears to be a 'tension filled' few months in the eyes of the Street between the White House and Apple," Wedbush Securities analyst Dan Ives said in a client note. Ives rates Apple stock as outperform with a price target of 270.
He added, "The stock bounced on this relief with Apple now in a better standing position with Trump although challenges remain. The reality continues to be that producing iPhones in the U.S. is unrealistic given the cost structure vs. Asia/India and remains a fairy tale concept in our view. Apple will invest in Macs, AI, and a host of other tangential initiatives, but NOT core flagship iPhones being built in the U.S."
In May, Trump threatened to hit Apple with a tariff of at least 25% if it didn't move manufacturing of the iPhone to the U.S.
Trump this year has secured U.S. investment deals with Nvidia, Oracle, OpenAI and other corporations.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
