Apple shares fell by almost 10% last week after a forecast showed that the iPhone creator was struggling to shore up its components amid the AI-boom pressure on supply chains.

If sustained, the drop would see Apple lose nearly $500 billion from its market value, meaning that Nvidia would reclaim the title of the world’s most valuable company, just days after Apple took back the spot.

Apple is apparently “scrambling” and stockpiling materials to meet its iPhone manufacturing needs, the firm warned.

The firm is struggling, however, as the AI-boom has squeezed global supply chains.

Dubbed “RAMageddon”, the chip boom is pressuring a market which relies on careful design and precious metals, leaving many firms unable to obtain enough chips as they compete with top AI firms and manufacturers.

In CEO Tim Cook’s last earnings call before he retires from the helm of Apple, he called the supply chain shortages “very significant.” The tech firm raised the prices of its products, bar the iPhone, with the company expecting to drop a new model range later this year.

Recommended reading

• Apple Sues OpenAI Over Trade Secret Claims
• Apple Faces £3bn UK iCloud Trial
• Apple Reaches $4 Trillion Valuation, While NVIDIA Nears $5 Trillion

While Apple has largely managed to stifle the effects of the supply chain demand boom for compute with its stockpiled resources, Cook said that these are now running low. Apple, which has largely taken a backseat in the AI race – is still trying to meet demand for its devices – will have to go back to competing for supplies on the global market, with contending with inflated prices and AI bubble firms.

Apple’s growth revenue was forecast for last quarter as between 9% and 11%, but this came short of Wall Street’s 12% estimate. The firm saw weaker performance in its services, which include App Store purchases as well as Apple Music and Apple TV.