IBM Shares Tumble 25% After Warning Q2 Earnings Will Miss Targets as Enterprises Shift IT Budgets to AI Infrastructure

IBM-25.23%
According to IBM CEO Arvind Krishna on July 14, the company warned that second-quarter results would miss market expectations as enterprises prioritize capital spending on AI infrastructure—including servers, storage, and memory—while delaying software and consulting purchases. Krishnan noted that while supply chain challenges were anticipated, the magnitude of the shift in capital spending priorities and cybersecurity concerns among customers exceeded expectations. IBM's stock plunged more than 25% following the shareholder letter, marking its worst single-day performance since the company's 1911 founding.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
No comments