Apple (AAPL) is facing a supply squeeze tied to a basic but vital chip material. The issue centers on high-grade glass cloth used inside chipboards. This material helps chips stay stable and move data fast. Demand has jumped as AI spending rises across the tech sector. At the same time, supply is tight because one Japanese firm, Nitto Boseki Co., controls most of the output. As a result, Apple now competes for the same supply as Nvidia (NVDA), Advanced Micro Devices (AMD), Alphabet (GOOGL), and Amazon (AMZN).
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Meanwhile, AAPL shares rose 0.31% on Tuesday, closing at $261.05.
Why the Shortage May Last
So far, extra supply is not coming fast. The main supplier has said it will not rush to add new plants. Industry sources say real relief may not arrive until late 2027. Meanwhile, Apple is looking at new suppliers in China and Japan. However, chip firms move with care since weak parts can hurt yields and quality. Therefore, progress is slow. For investors, this shows how AI demand can strain even small parts of the tech chain. It also shows why supply limits can shape product plans and costs across the sector.
Is Apple a Buy, Hold, or Sell?
On the Street, Apple holds a Moderate Buy consensus. Out of 32 analysts’ ratings, only 19 rate the stock a Buy, while 11 analysts rate it a Hold, and two analysts rate it a Sell. The average AAPL stock price target is $299.69, implying a 14.80% upside from the current price.
