SynopsisApple shares plunged over 9% after the iPhone maker issued a weaker-than-expected outlook, warning that AI-driven component shortages are straining global supply chains. The stock is on track for its worst one-day fall in more than six years, putting nearly $500 billion in market value at risk and lifting Nvidia's valuation lead.ETMarkets.comApple shares tumbled 9.44% to $301.95 on Friday after the iPhone maker issued a weaker-than-expected outlook, citing component shortages as the AI-fuelled data-centre boom strains global supply chains, Reuters reported.The stock shed $31.48 in the session, slipping from its previous close of $333.43.If the decline holds, it would be Apple’s steepest one-day fall since the pandemic-driven selloff of March 2020 and would wipe nearly $500 billion from its market value. The slide would also return the title of the world’s most valuable company to AI chipmaker Nvidia, just days after Apple reclaimed it.Calling the shortages “very significant,” Tim Cook, widely hailed as a supply-chain genius, said Apple had limited options to address them. He made the remarks during his final earnings call as CEO before handing the reins to John Ternus in September and becoming executive chairman, Reuters reported."If even at Apple's scale they are saying they are out of supply chain flexibility, it's really bad for everyone," said Ben Bajarin, CEO of tech consultant Creative Strategies.Big Tech’s rush to secure advanced chipmaking capacity and memory chips for AI data centres has fuelled shortages and pushed up prices, threatening to contract the personal computer and smartphone markets this year.Apple initially softened the impact of rising memory costs by relying on its stockpiles, but Cook said those reserves were dwindling. Processor shortages were also preventing the company from fully meeting strong demand for iPhones and Macs.According to Reuters, Apple’s forecast for revenue growth of 9% to 11% in the current quarter fell short of Wall Street’s estimate of about 12%, while slower growth in its services business overshadowed otherwise strong June-quarter results.The slowdown could worsen if an expected price increase for Apple’s new iPhone lineup, typically launched in September, weighs on demand."Apple's leverage over the supply chain appears to be in question and it's not clear that AI is serving as any measurable tailwind to ⁠products or services, with its future monetization impact still uncertain," Morgan Stanley analysts said."In fact, one could argue App Store softness might even be a result of AI re-prioritising customer time."Some analysts, however, noted that previous iPhone price increases had little effect on demand. They added that Apple’s recent US leasing partnership with Klarna, which offers monthly payment plans for its devices, could help cushion the impact.At least four brokerages lowered their price targets for Apple, while three raised theirs, bringing the median target to $330—about $3 below the stock’s latest closing price, according to LSEG data cited by Reuters. Apple shares had gained 22.7% this year through Thursday’s close.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless