Apple (AAPL) Is Up 13.3% After $100 Billion Boost to US Manufacturing Plan—What's Changed

• Apple announced a major expansion of its US manufacturing footprint, committing an additional US$100 billion over four years through its new American Manufacturing Program, bringing total planned domestic investment to US$600 billion, at a White House event with CEO Tim Cook and key partners like Corning and GlobalFoundries joining the effort.
• This initiative aims to bring more of Apple’s supply chain and advanced component production to the US, reflecting both geopolitical pressures and a broader shift toward supply chain localization and job creation.
• We’ll examine how this large-scale US manufacturing investment and supply chain realignment could reshape Apple’s investment narrative and long-term risk profile.

Find companies with promising cash flow potential yet trading below their fair value.

Apple Investment Narrative Recap

To be an Apple shareholder, I believe you have to trust the company's ability to drive growth through innovation, ecosystem expansion, and margin strength, even as it faces regulatory, supply chain, and geopolitical headwinds. While the recent US$100 billion American Manufacturing Program could help reduce some tariff risks and supply chain concentration, it does not immediately change the most important short-term catalyst, AI-powered device upgrades, or address the largest current risk, which is legal and regulatory scrutiny around Apple's high-margin Services revenue stream.

One of the most relevant recent announcements is Apple's expanded partnership with Corning, committing US$2.5 billion to produce all iPhone and Apple Watch cover glass in the US. This investment reinforces the push toward domestic supply chain control, directly supporting Apple's supply chain resilience and tariff mitigation catalysts, but the biggest pressure on valuation and near-term sentiment remains legal actions and regulatory oversight tied to Apple Pay and the App Store.

In contrast, investors should also keep an eye on unresolved lawsuits around Apple Pay and potential impacts to Services revenue, as ...

Read the full narrative on Apple (it's free!)

Apple's outlook anticipates revenues of $482.6 billion and earnings of $134.5 billion by 2028. This forecast is built on a 5.7% annual revenue growth rate and a $35.2 billion increase in earnings from the current $99.3 billion.

Uncover how Apple's forecasts yield a $233.03 fair value, in line with its current price.

Exploring Other Perspectives

132 individual fair value estimates from the Simply Wall St Community range widely from US$166.02 to US$283.66 per share. While views are split, the latest multi-billion dollar US manufacturing commitment brings supply chain risks and future margin stability into sharper focus for all market participants, explore multiple viewpoints to understand the range of conviction.

Explore 132 other fair value estimates on Apple - why the stock might be worth 28% less than the current price!

Build Your Own Apple Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Apple research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Apple research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Apple's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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