Apple shares took a significant hit on Friday, plunging nearly 10% after the company issued a surprisingly weak financial outlook. This sharp decline threatens to wipe out approximately $500 billion in market value, likely costing Apple its title as the world’s most valuable company and handing the top spot back to Nvidia. The turbulence stems from ongoing supply chain constraints, as the massive demand for AI-driven data centers has created a global shortage of essential components, leaving even a supply-chain expert like Tim Cook struggling to keep up with consumer interest in iPhones and Macs.

Beyond the immediate component shortages, investors are growing increasingly anxious about the slowing performance of Apple’s services division. While the company posted decent results for the June quarter, its revenue growth projections fell short of Wall Street expectations. Analysts are now questioning whether Apple can maintain its historical leverage over supply chains and whether its services segment—which typically benefits from strong hardware sales—will suffer if future price hikes drive customers away. With several brokerages trimming their price targets, the tech giant faces mounting pressure to prove that its future product roadmap can successfully navigate these complex economic headwinds.