Apple said Monday that it is building a factory in Texas to manufacture servers for its data centers to power Apple Intelligence applications. Apple stock rose modestly on the news.
In a press release detailing its investments in the U.S., Apple noted that it is working with contract manufacturer Foxconn, formally known as Hon Hai Precision Industry, to build a 250,000-square-foot facility in Houston to make its artificial intelligence servers. Those servers currently are made outside of the U.S., Apple said.
Apple said it will begin production of AI servers in Houston later this year and will open the new server factory in 2026.
Meanwhile, the tech giant said it is expanding its data center capacity in North Carolina, Iowa, Oregon, Arizona and Nevada.
In addition, Apple said it will add about 20,000 research and development jobs across the U.S. over the next four years. Those jobs will be focused on silicon and hardware engineering, software development, and AI and machine learning.
On the stock market today, Apple stock climbed 0.6% to close at 247.10.
Apple Touts $500 Billion In U.S. Spending
All told, Apple said it will spend and invest more than $500 billion in the U.S. over the next four years. The news comes after Apple Chief Executive Tim Cook met last week with President Donald Trump, who is working to bring production back to the U.S.
"We are bullish on the future of American innovation, and we're proud to build on our long-standing U.S. investments with this $500 billion commitment to our country's future," Cook said in a statement. "From doubling our Advanced Manufacturing Fund, to building advanced technology in Texas, we're thrilled to expand our support for American manufacturing."
Apple is doubling its U.S. Advanced Manufacturing Fund to $10 billion from $5 billion. It created the fund in 2017 to support advanced manufacturing and skills development throughout the country.
The company's $500 billion commitment includes spending with suppliers, AI infrastructure and data centers, corporate facilities, direct employment and production of Apple TV+ movies and TV series.
Its domestic suppliers include chipmakers Broadcom, Texas Instruments, Skyworks Solutions and Qorvo. It also is the largest customer of Taiwan Semiconductor Manufacturing's Fab 21 facility in Arizona.
Trump thanked Cook for his commitment to investing in the U.S. in a post on Truth Social.
Apple Stock Is In Cup Base
In a client note, Wedbush Securities analyst Daniel Ives said Apple's domestic spending announcement is a "strategic move" by Cook as it plays into Trump's U.S. investment theme.
"Cook continues to prove that he is 10% politician and 90% CEO," Ives said. He reiterated his outperform rating on Apple stock with a price target of 325.
CFRA Research analyst Angelo Zino said Apple's announcement is "a bit deceptive" because it includes all of its spending over the next four years. That includes capital expenditures, cost of goods sold, and operating expenses.
"Although greater U.S. investments doesn't circumvent potential Trump tariffs in China, we note that AAPL made a similar announcement during Trump's first tenure ($350B at the time)," Zino said in a client note. "As such, we think it will at least put the company in the good graces of the new administration should exemptions be on the table."
Zino rates Apple stock as buy.
Apple stock has formed a cup base with a buy point of 260.10, according to IBD MarketSurge charts.
Further, Apple stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
