Apple plans $500 billion in US investment, 20,000 research jobs in next four years By Reuters
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2025
0mins
Should l Buy AAPL?
Source: Investing.com
Apple's Investment Plans: Apple announced a $500 billion investment in the U.S. over the next four years, which includes building a factory in Texas for AI servers and creating 20,000 research and development jobs nationwide.
Political Context and Manufacturing Initiatives: This announcement follows a meeting between Apple CEO Tim Cook and President Trump, and it reflects Apple's ongoing commitment to U.S. manufacturing, including plans to enhance its Advanced Manufacturing Fund and establish a manufacturing academy in Michigan.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 274.620
Low
230.00
Averages
299.69
High
350.00
Current: 274.620
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Growth Expectations: Apple's latest financial results show a 16% increase in revenue and an 18% rise in diluted earnings per share (EPS), with analysts projecting an annual EPS growth of 11.5% from FY2025 to FY2028, providing confidence to investors.
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- Remarkable Historical Returns: Over the past 20 years, Apple's stock has surged by 10,650%, with a total return of 12,730% including reinvested dividends, highlighting its strong performance and investment appeal in the consumer tech sector.
- Innovation-Driven Products: The iPhone accounted for 59% of Apple's revenue in Q1 FY2026, while other products like the MacBook, iPad, and AirPods also performed well, further solidifying Apple's leadership position in the global market.
- Earnings Growth Expectations: Apple's latest financial results show a 16% increase in revenue and an 18% rise in diluted earnings per share (EPS), with analysts projecting an annual EPS growth of 11.5% from FY2025 to FY2028, providing confidence to investors.
- Stable Market Valuation: With a price-to-earnings ratio of 34.9, Apple's stock is expected to continue rising if this valuation remains stable, although concerns about its position in the age of artificial intelligence could affect investor sentiment; nonetheless, the overall outlook remains optimistic.
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- Controversial Tech Use: The letter highlights Salesforce's pitches of AI technology to ICE for rapidly hiring 10,000 new agents, raising concerns that this could expand ICE's operational capacity and provoke greater social controversy and ethical responsibility.
- Negative Market Reaction: Salesforce's stock has declined approximately 27% in 2026, with investor worries about AI models potentially harming growth prospects for software companies intensifying, and employee protests may further exacerbate market unease regarding the company.
- Lack of Transparency Issues: Employees are demanding clarity on the scope and governance of Salesforce's services to ICE, arguing that the opacity prevents informed decision-making and poses personal and professional risks, which could undermine internal trust and company culture.
See More
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- Employee Protest: Over 1,400 Salesforce employees have signed a letter urging CEO Marc Benioff to cease potential business with the U.S. Immigration and Customs Enforcement (ICE), reflecting strong opposition among staff that could impact company reputation and employee morale.
- Controversial Tech Application: The letter highlights Salesforce's pitches of AI technology to ICE for expediting the hiring of 10,000 new agents, raising concerns among employees about the potential enabling of ICE's expansion, which could lead to diminished trust from clients and the public towards Salesforce.
- Market Pressure: Salesforce's stock has declined approximately 27% in 2026, with investor concerns about AI models affecting growth prospects for software companies intensifying; employee protests may further impact stock price and market performance.
- Industry Trend Impact: This protest aligns with similar actions from employees at other tech firms, such as 900 Google employees calling for divestment from ICE, indicating widespread discontent within the tech industry regarding government enforcement actions, potentially prompting more companies to reassess their relationships with government agencies.
See More
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- Significant User Growth: Spotify's monthly active users (MAUs) grew by 11% year-over-year to 751 million in Q4, demonstrating strong market appeal despite fierce competition from Apple, Amazon, and YouTube.
- Increase in Paid Subscribers: The number of Spotify's premium subscribers rose by 10% to 290 million, successfully converting free users to paid, indicating effective strategies in enhancing user experience and revenue generation.
- Revenue and Profitability Improvement: Spotify's revenue increased by 13% in constant currency to €4.5 billion ($5.4 billion), while gross margin improved by 83 basis points to 33.1%, reflecting the company's ability to enhance profitability alongside user base expansion.
- Optimistic Future Outlook: Management anticipates MAUs will grow to 759 million and premium subscribers to 293 million in Q1 2026, suggesting that ongoing investments in audio technology platforms will yield greater market opportunities.
See More
Regular ETF Investment Strategy for Long-Term Returns
- Importance of Investment Planning: Regularly investing $400 per month, assuming a 10% annual return, can grow your investment to $1 million in approximately 31 years, highlighting the potential of long-term investment and the importance of having a plan.
- Vanguard ETF Selection: The Vanguard Russell 1000 Growth ETF, with a low expense ratio of 0.06%, holds nearly 400 stocks, with 60% in tech, ensuring stable returns for investors in large growth stocks while minimizing investment risks.
- Tech Stock Potential: The Vanguard Information Technology ETF currently holds 320 stocks, with Nvidia, Apple, and Microsoft making up 45% of its portfolio; despite short-term volatility risks, holding this ETF long-term can lead to market-beating returns.
- Market Volatility and Long-Term Gains: While tech stocks may experience short-term fluctuations, their high return potential allows investors to reach the $1 million goal faster in the long run, emphasizing the value of continued investment in the tech sector.
See More
