Apple Shares Plummet by Nearly 10% Amid AI Component Shortages

Apple's shares plummeted by nearly 10% after forecasts indicated the tech giant was struggling to secure necessary components. The decline, which erased approximately US$500 billion from Apple's market capitalization, came just days after the company reached a $5 trillion market value and surpassed Nvidia as the world's most valuable company.

The struggle to acquire components is largely attributed to the AI data centre boom, which has put immense strain on global supply chains. This shortage has led to higher prices for advanced memory chips used in AI-enabled data centres, further exacerbating the issue.

Apple's chief financial officer, Kevan Parekh, recently announced that the company is expecting 9-11% revenue growth in the three months leading up to September. However, this projection fell below Wall Street forecasts of 12%, contributing to the sharp decline in Apple shares.