IBM Shares Plunge 26% on Weak Software Outlook; Apple Downgraded to Underweight

According to CNBC's Investing Club, on Tuesday, IBM shares plunged roughly 26% after the company preannounced a weaker quarter due to softness in its software business, marking the stock's worst day since October 1987. IBM attributed the challenges to customers shifting spending toward servers, storage, and memory for AI infrastructure.

Apple shares slipped nearly 1% after KeyBanc downgraded the stock to underweight with a $250 price target, citing concerns about scaling back wireless carrier subsidies potentially slowing iPhone upgrade cycles. Arm Holdings fell more than 5% after HSBC downgraded it to hold due to foundry capacity constraints. In response, the Investing Club exited its Arm position to purchase more Intel shares.