{"slug": "apple-set-to-lose-almost-500-billion-in-value-as-shares-hit-by-ai-boom", "title": "Apple set to lose almost $500 billion in value as shares hit by AI boom", "summary": "Apple Inc. shares fell nearly 10% on Friday after the company warned of significant supply chain shortages, erasing nearly $500 billion in market value and potentially ceding the title of world's most valuable company to Nvidia Corp. CEO Tim Cook called the shortages 'very significant' and said Apple had limited options to address them, as the AI-driven data center boom strains global chip and memory supplies. The forecast for 9-11% revenue growth in the current quarter missed Wall Street's ~12% estimate, and softer services growth added to investor concerns.", "body_md": "# Apple set to lose almost $500 billion in value as shares hit by AI boom\n\nTim Cook called the shortages ‘very significant’ as Apple dealt with the latest RAMageddon hit\n\n- Bookmark\n- CommentsGo to comments\n\nShares in Apple have fallen by nearly 10% on Friday after a forecast showed that the iPhone maker was struggling to keep up with demand.\n\nThe company is stockpiling and “scrambling” to ensure it is able to produce enough iPhones, the company warned on Friday.\n\nIt is failing to secure enough components as the AI-driven data center boom strains global supply chains. Sometimes referred to as “RAMageddon”, the rush for chips to power AI systems has left manufacturers of other devices unable to buy them, and forced companies to increase the prices of their products.\n\nThe drop, if sustained, would mark the stock's worst day since the pandemic-driven selloff in March 2020. It would erase nearly $500 billion from Apple's market capitalisation and return the crown of the world's most valuable company to AI chip giant Nvidia, days after reclaiming it.\n\n[Apple last month pushed up the prices of many its devices by 20 per cent or more](/tech/apple-rises-price-cost-macbook-ipad-b3002959.html). That did not apply to iPhones, but that may be because Apple is planning to launch a range of new models in September and could use that opportunity to increase prices then.\n\nTim Cook, widely hailed as a supply-chain genius, called the shortages \"very significant\" and said Apple had limited options to address them, speaking on his final earnings call as CEO before handing the reins to John Ternus in September and becoming executive chairman.\n\n\"If even at Apple's scale they are saying they are out all supply chain flexibility, it's really bad for everyone,\" said Ben Bajarin, CEO of tech consultant Creative Strategies.\n\n## Why did Apple stock drop today?\n\nBig Tech has been scooping up advanced chip-making capacity and memory chips to power its AI data centers, sparking shortages and price increases that are expected to shrink both the personal computer and smartphone markets this year.\n\nApple had cushioned some of the blow from surging memory costs by drawing on stockpiled inventory, but Cook said that the buffer was fading and shortages of processors were keeping it from meeting strong demand for iPhones and Macs.\n\nIts forecast on Thursday for revenue growth of between 9% and 11% in the current quarter fell short of Wall Street's roughly 12% estimate, and softer growth in its services business also overshadowed otherwise strong June-quarter results.\n\nThe services weakness worried investors as it came during a stretch of strong iPhone sales, which typically feed the business that takes a cut of App Store purchases and includes everything from Apple Music to Apple TV.\n\n\"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.\n\n\"In fact, one could argue App Store softness might even be a result of AI re-prioritizing customer time.\"\n\nStill, some analysts said that the iPhone has weathered price hikes before without denting demand significantly and that a recent U.S. leasing deal with Klarna that offers monthly plans for Apple's devices could soften the blow.\n\nAt least four brokerages cut their targets for the company's stock price, while three raised. That moved the median view to $330, which is $3 lower than the last closing price, according to LSEG data. The stock has risen 22.7% this year as of Thursday's close.\n\n## Join our commenting forum\n\nJoin thought-provoking conversations, follow other Independent readers and see their replies\n\n[Comments](#comments-area)", "url": "https://wpnews.pro/news/apple-set-to-lose-almost-500-billion-in-value-as-shares-hit-by-ai-boom", "canonical_source": "https://www.independent.co.uk/tech/apple-stock-shares-drop-iphone-ai-b3025489.html", "published_at": "2026-07-31 15:27:58+00:00", "updated_at": "2026-07-31 15:36:20.095162+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips"], "entities": ["Apple Inc.", "Tim Cook", "Nvidia Corp.", "John Ternus", "Ben Bajarin", "Creative Strategies", "Morgan Stanley", "Klarna"], "alternates": {"html": "https://wpnews.pro/news/apple-set-to-lose-almost-500-billion-in-value-as-shares-hit-by-ai-boom", "markdown": "https://wpnews.pro/news/apple-set-to-lose-almost-500-billion-in-value-as-shares-hit-by-ai-boom.md", "text": "https://wpnews.pro/news/apple-set-to-lose-almost-500-billion-in-value-as-shares-hit-by-ai-boom.txt", "jsonld": "https://wpnews.pro/news/apple-set-to-lose-almost-500-billion-in-value-as-shares-hit-by-ai-boom.jsonld"}}