Apple's Supply Chain Woes Send Shares Plummeting 10%

Apple's shares fell nearly 10% on Friday after the company issued a weak forecast for its current quarter, citing struggles to secure enough components due to the AI-driven data center boom straining global supply chains.

The drop, if sustained, would mark the stock's worst day since March 2020 and erase nearly $500 billion from Apple's market capitalization. This would return the crown of the world's most valuable company to Nvidia, which Apple had reclaimed just days earlier.

Tim Cook, who will step down as CEO in September, described the shortages as 'very significant' and said Apple had limited options to address them.

The strain on supply chains is a result of Big Tech companies scooping up advanced chip-making capacity and memory chips to power their AI data centers, leading to price increases that are expected to shrink both the personal computer and smartphone markets this year.