Apple faces $500B risk from component shortages

Apple's stock declined by about 10% after issuing disappointing forecasts indicating difficulties in securing the necessary components for iPhone manufacturing, due to supply chain pressures caused by increased demand for data centers related to artificial intelligence technologies. Tim Cook explained that the component shortage is very significant, and the options available to address it are limited, which could wipe out around $500 billion of Apple's market value and relegate it from the world's most valuable company to NVIDIA. The article also discusses how major companies are planning substantial investments in AI, while forecasts suggest that chip shortages may lead to a market contraction for products like smartphones and computers this year.

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