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Apple shares plunge after forecast points to AI-driven component shortages
The company forecast revenue growth of 9% to 11% for the current quarter, below Wall Street expectations of about 12%.
Apple shares fell nearly 10% on Friday after its forecast signaled it was struggling to secure enough components, as demand for AI data centres strains global supply chains. The selloff, if sustained, could remove nearly $500 billion from Apple’s market value and would be its worst day since March 2020, according to LiveMint Markets.
CEO Tim Cook said the shortages were “very significant” and acknowledged Apple has limited options to address them. LiveMint Markets also noted that the shortages were viewed as particularly concerning after Apple reclaimed the top spot from Nvidia as the world’s most valuable company just days earlier.
The report links the component squeeze to Big Tech buying up chips and memory for AI data centres, contributing to visible shortages and higher prices for PCs and smartphones. Cook said Apple had cushioned some of the impact from rising memory costs, but that buffer is fading, with processor shortages also limiting Apple’s ability to meet strong iPhone and Mac demand.
Apple’s current-quarter revenue growth forecast of 9% to 11% fell short of Wall Street’s roughly 12% estimate, while weaker services growth weighed on the results despite otherwise strong June-quarter performance, LiveMint Markets said. Cook’s comments came during what the outlet described as his final earnings call before handing over the CEO role to John Ternus in September and moving to executive chairman.