Apple (AAPL 0.63%) stock is bounding higher in Wednesday's trading. The tech giant's share price was up 4.3% as of 11:15 a.m. ET. At the same point in the day's trading, the S&P 500 was up 0.4%, and the Nasdaq Composite was up 0.5%.
Apple's valuation is seeing gains today after Bloomberg published a report stating that the company is poised to announce some major news. According to the report, the company will announce at the White House today that it's making a new $100 billion investment in its U.S. tech manufacturing infrastructure.
Apple stock jumps on $100 billion U.S. infrastructure news
Apple CEO Tim Cook is set to join President Donald Trump at the White House today and is expected to announce that his company is devoting another $100 billion to strengthening its U.S. manufacturing capabilities. Apple still relies on Chinese manufacturing for a significant amount of its device production, but tariffs and geopolitical tensions between China and the U.S. are making it more important for the tech giant to bolster its domestic manufacturing base.
What's next for Apple?
Apple's business is still enormously profitable, and its iPhone line continues to enjoy a dominant position in the mobile market. On the other hand, it looks like the impact of market saturation and commodification trends is starting to make growth much more difficult to come by -- and the company hasn't scored big wins with artificial intelligence (AI) in the same way that other "Magnificent Seven" companies have. Additionally, the company is facing some significant headwinds in the Chinese market that are weighing on overall business performance.
Apple is still a great company, but it faces the challenge of introducing major new products or services that can help reenergize growth. Delivering a major new hit will take some time and isn't a sure thing, so making moves to shore up key political partnerships and lay the technology and infrastructure foundations for long-term manufacturing initiatives and expansion projects looks like a smart play right now.
