Apple shares fell nearly 10% on Friday, erasing roughly $500 billion in market value as investors reacted to warnings about component shortages.
The decline stems from a forecast indicating the iPhone maker is struggling to secure sufficient parts amid intense competition for supply chain capacity driven by the AI data center boom.
CEO Tim Cook highlighted significant supply chain issues, signaling that the company's production pipeline faces headwinds it did not anticipate at this scale.
The sharp sell-off in Apple stock has immediate implications for the broader technology sector and the race for market capitalization leadership.
With Apple's valuation taking a hit, Nvidia is positioned to potentially reclaim its title as the world's most valuable company, a crown it recently ceded to Apple.
This shift underscores the volatility inherent in the tech sector's valuation hierarchy, where supply-side constraints can rapidly alter investor sentiment and relative market standing.