Apple (NASDAQ: AAPL) stock surged 5.09% to $213.25 on Wednesday, with premarket trading extending gains to $220.00 (+3.17%), following the tech giant’s announcement of a major $100 billion investment commitment to boost U.S. manufacturing operations.
$100 Billion investment in America
The price surge came after Apple unveiled a new “$100 billion commitment to America,” a significant increase of its U.S. investment that now totals $600 billion over the next four years.
The initiative centers around the ambitious new American Manufacturing Program (AMP), dedicated to bringing even more of Apple’s supply chain and advanced manufacturing to the U.S.
“Today, we’re proud to increase our investments across the United States to $600 billion over four years and launch our new American Manufacturing Program,” said Tim Cook, Apple’s CEO.
The program includes partnerships with major suppliers including Corning (NYSE: GLW), Coherent (NYSE: COHR), GlobalWafers America, Applied Materials (NASDAQ: AMAT), Texas Instruments (NASDAQ: TXN), Samsung, GlobalFoundries, Amkor (NASDAQ: AMKR), and Broadcom (NASDAQ: AVGO).
Analyst upgrades
Following the announcement, Wall Street analysts updated their outlook on Apple stock. Wells Fargo reiterated its Overweight rating and maintained a $245 price target.
Evercore ISI also reiterated its Outperform rating on Apple with a $250 price target. Analyst Amit Daryanani commented that “Apple’s commitment to U.S. manufacturing should exempt the company from sectoral tariffs on semiconductors, and we think clarity surrounding this overhang should be an incremental positive for AAPL stock.”
According to compiled Wall Street data from TipRanks, Apple maintains a “Moderate Buy” consensus rating from 28 analysts covering the stock. The analyst breakdown shows 15 Buy ratings, 12 Hold ratings, and only 1 Sell rating.
The average 12-month price target is set at $233.10, though price targets range significantly, with the highest target at $275.00 and the lowest at $180.00.
The price upgrades come on the heels of the company’s strong fiscal third-quarter performance delivered on July 31, where Apple exceeded expectations with $94 billion in revenue and EPS of $1.57, beating consensus estimates by 10-12%.
The strong results initially drove after-hours trading gains of 2-3%, though the stock had slipped 0.7% during regular trading on the earnings day.
Featured image via Shutterstock.
