Apple shares plunged nearly 10% on Friday, putting the company on track to lose almost $500 billion in market value as investors reacted to supply constraints and weaker-than-expected guidance.

As reported on Friday, the sharp downturn followed Apple's projection for revenue growth of 9% to 11% for the current quarter, below Wall Street's expectations of roughly 12%, intensifying investor concerns over the company's outlook.

The data-center-driven AI boom is straining global semiconductor and memory supply chains, with major technology companies competing for chips to power artificial intelligence infrastructure. 

The scramble, often dubbed "RAMageddon," has pushed up component costs and made it harder for consumer electronics companies to meet hardware demand.

CEO Tim Cook said Apple's ability to absorb rising memory costs is fading, while ongoing processor shortages are limiting the company's ability to keep pace with demand for iPhones and Macs. 

He described the supply constraints as "very significant" and said Apple had limited options to address them during his final earnings call as CEO before handing the role to John Ternus in September and becoming executive chairman.

Apple's projected revenue growth of 9% to 11% for the current quarter fell short of Wall Street's roughly 12% expectations, amplifying investor anxiety.

If sustained, the decline would mark Apple's worst trading day since the pandemic-driven selloff in March 2020. 

The drop would erase nearly $500 billion from Apple's market capitalization and hand the title of world's most valuable company back to AI chip giant Nvidia, days after Apple reclaimed it.

Big 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.

"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.