$IBM plunges 25% as the AI investment boom reshapes enterprise technology budgets
📉 IBM shares fell about 25% on July 14, closing near $217.05 and erasing almost $69 billion in market value, marking the company’s steepest decline since Black Monday in 1987.
📊 Preliminary second-quarter results showed revenue of approximately $17.2 billion, up 1% year over year, while Infrastructure revenue declined 7% and fell short of market expectations.
🧠 IBM said many customers are prioritizing spending on servers, storage and memory for AI infrastructure, delaying several large deals and weakening the company’s quarterly performance.
🌐 The move suggests that the AI boom is shifting technology spending toward hardware and infrastructure at the expense of traditional enterprise software. The pressure also spread to Salesforce, Microsoft and the broader software sector.
#IBM
📉 IBM shares fell about 25% on July 14, closing near $217.05 and erasing almost $69 billion in market value, marking the company’s steepest decline since Black Monday in 1987.
📊 Preliminary second-quarter results showed revenue of approximately $17.2 billion, up 1% year over year, while Infrastructure revenue declined 7% and fell short of market expectations.
🧠 IBM said many customers are prioritizing spending on servers, storage and memory for AI infrastructure, delaying several large deals and weakening the company’s quarterly performance.
🌐 The move suggests that the AI boom is shifting technology spending toward hardware and infrastructure at the expense of traditional enterprise software. The pressure also spread to Salesforce, Microsoft and the broader software sector.
#IBM