Two stocks that could win from Apple's U.S. manufacturing effort pushed by Trump

Apple's pledge to invest $600 billion domestically over four years is poised to significantly benefit strategic partners Corning and Coherent. Analysts highlight Corning's strengthened ties with Apple, anticipating expanded opportunities in new form factors like foldable iPhones by 2026, which is expected to boost its Kentucky workforce by 50% and establish a joint innovation center. Bank of America reiterated a buy rating on Corning, raising its price target to $75, driving Corning shares up nearly 2% to a 52-week high. Coherent also saw a nearly 4% jump to a fresh 52-week high, though Morgan Stanley expressed caution on its overall impact.

Analysis

Apple's commitment to invest $600 billion domestically over four years provides a significant, long-term catalyst for strategic partner Corning (GLW). The strengthened partnership has prompted a bullish revision from Bank of America, which reiterated its buy rating and raised its price target to $75, implying 17% upside from its recent close. This optimism is rooted in a previously uncontemplated growth opportunity for Corning in the foldable cover glass market, tied to a potential 2026 foldable iPhone. The commitment is tangible, with plans to increase Corning's Kentucky workforce by 50% and establish a joint Innovation Center. The market has responded favorably, pushing GLW shares up nearly 2% to a 52-week high, contributing to a 37% year-to-date gain. While fellow strategic partner Coherent (COHR) also saw its stock jump almost 4% to a new 52-week high, the outlook is more tempered. Morgan Stanley noted that even gaining full share of Apple's business would have a 'relatively small impact' on Coherent, suggesting a significant disparity in the magnitude of benefits for the two suppliers.

Key Decisions for Investors

• Investors should view the strengthened Apple partnership as a material long-term growth driver for Corning, with the potential 2026 foldable iPhone serving as a key future catalyst supporting the new $75 price target.
• It may be prudent to differentiate between the two suppliers, as the financial impact and analyst conviction appear substantially stronger for Corning compared to Coherent, for which the benefit is described as potentially 'relatively small'.
• Given Corning's 37% year-to-date rally and the multi-year timeline for the foldable device catalyst, investors should monitor for execution on interim milestones, such as developments at the joint Innovation Center, to validate the current valuation.