AAPL Shares Plummet as Apple Grapples with AI Boom Costs

Apple Inc.'s (AAPL) third-quarter revenue and cash flow reached record levels, but shares plummeted over 7% due to cautious guidance and AI-related cost pressures.

The tech giant's disciplined approach to artificial intelligence preserves its free cash flow but leaves it behind in terms of AI monetization, with unclear revenue impact from new features.

Component inflation and supply constraints, driven by the industry-wide AI boom, are compressing margins and limiting device production for Q4.