Tech titan Apple (AAPL) has started shipping advanced AI servers from its newly completed factory in Houston, Texas. This factory is part of Apple’s $600 billion U.S. investment plan, which includes domestic manufacturing, supplier partnerships, and technology development. Interestingly, the servers built at this site will support Apple Intelligence, along with Private Cloud Compute, and run on Apple’s in-house chips.
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In addition, Apple’s Chief Operating Officer, Sabih Khan, said that the Houston facility was finished earlier than expected and will expand next year in order to increase production. It is worth noting that until now, Apple had been building these AI servers overseas. However, thanks to this change, thousands of new jobs are expected to be created. Nevertheless, even though Apple is growing its U.S. operations, it still relies heavily on overseas facilities for iPhone production.
Unsurprisingly, President Trump has called for Apple to bring iPhone manufacturing to the U.S., but industry experts note that such a move would be very expensive and take years to achieve. As a result, Apple is strengthening its local supply chain in the meantime, especially when it comes to semiconductors. In fact, CEO Tim Cook recently highlighted that Apple’s partnerships are helping shift more of the chip fabrication and packaging process to the U.S., which could lead to a complete domestic chip supply chain.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 20 Buys, 12 Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $260.40 per share implies that shares are trading near fair value.
