Apple is investing 500 billion dollars in the Technology "arms race," but what impact does this have on the company's finances?
Bank of America Merrill Lynch believes that despite the large scale of investment, it will not affect Apple's capital return plan. It is expected that the future free cash flow will remain strong and the level of shareholder returns may continue to be at similar levels. The vast majority of this may not be incremental spending, but rather already included in Apple's spending roadmap, although now some spending may be shifted to the USA.
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The leaders of the U.S. stock market are showing weakness, and Analysts warn that market sentiment is becoming poor.
① Last week, the US stock market experienced a sell-off, with the Nasdaq Composite Index, S&P 500 Index, and Dow Jones Industrial Average all recording declines; ② The market faces pressures from the threat of a government shutdown, high tariffs, and the Federal Reserve delaying interest rate cuts, leading to low investor sentiment; ③ Analysts also pointed out that leading companies in the US stock market have shown weak performance recently, and if they cannot continue to lead the market upward, the US stock indices may continue to be impacted.
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Details of Apple's $500 billion investment in the US have surfaced: a new AI Server factory is being built in Houston and will begin Operation next year. (Original text attached)
Apple stated that this is part of the company's $500 billion investment plan. The new factory is expected to cover an area of 0.25 million square feet for the production of Apple Intelligence Server.