Apple has announced a substantial increase in its investments in the US as the technology giant intends to spend $430 billion over the next five years and add 20,000 new jobs across the US in the process. The company is also planning to open an engineering campus in North Carolina.
Apple (AAPL) said that in the past three years, the company has significantly exceeded its original goal of investing $350 billion in the US, which was set in 2018. The company has now decided to raise its investment in the US by 20% over the next five years.
Apple’s CEO, Tim Cook, said, “At this moment of recovery and rebuilding, Apple is doubling down on our commitment to US innovation and manufacturing with a generational investment reaching communities across all 50 states. We’re creating jobs in cutting-edge fields — from 5G to silicon engineering to artificial intelligence — investing in the next generation of innovative new businesses, and in all our work, building toward a greener and more equitable future.”
AAPL intends to spend some of this contribution on 5G technology and silicon engineering across nine states in the US. The company also said that its $430 billion in investments would include “direct spend with American suppliers, data center investments, capital expenditures in the US, and other domestic spend.”
AAPL will also invest $1 billion in the construction of a new campus and engineering hub in the Research Triangle area of North Carolina. This investment is expected to create 3,000 new jobs in the fields of artificial intelligence, software engineering and machine learning.
In addition, AAPL will establish a fund worth $100 million to “support schools and community initiatives in the greater Raleigh-Durham area and across the state.” The company’s investments in the state of North Carolina are expected to generate $1.5 billion in economic benefits on an annual basis. (See Apple stock analysis on TipRanks)
Today, Deutsche Bank analyst Sidney Ho reiterated a Buy on the stock. Ho said in a research note to investors that industry and supply chain checks have indicated that AAPL’s smartphones, particularly 5G units, are trending well for the year with minimal inventory.
The analyst also expects continued high demand for the iPhone as a result of a delay in launch last year, and believes AAPL will continue to benefit as it controls a larger share of the market.
Overall, the consensus on the Street is that AAPL is a Moderate Buy, based on 22 Buys, 4 Holds, and 2 Sells. The average analyst price target of $151.46 implies that the stock has an upside potential of 13% to current levels.
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