Goldman Sachs: Rates Apple as "Buy" with a target price of $266. Import tariff exemptions may bring cost advantages.

Goldman Sachs released a report stating that Apple has pledged to invest $600 billion in the United States over the next four years, up from the previous commitment of $500 billion. Additionally, the tariff exemptions obtained by Apple should help alleviate concerns about tariff barriers before the implementation of the latest 100% semiconductor tariff. Furthermore, this exemption may give Apple a potential cost advantage over competitors in the smartphone, personal computer, and tablet computer industries that have not received exemptions. The report states that Apple's new commitment to invest in building advanced Apple server facilities to support Apple Intelligence and private cloud computing indicates that Apple is accelerating its investment in AI. The firm believes that this increases the likelihood of success in Apple's AI software efforts and reduces the probability of engaging in AI-related acquisitions. Goldman Sachs has given Apple a "buy" rating with a target price of $266, citing attractiveness in comparison to historical valuation multiples of Apple and its major tech peers. The firm notes that in the next five years, most of the gross profit growth will be driven by the services business, which will serve as a turning point in the services investment story and support Apple's premium valuation.