IBM's $100B Wipeout: 35% Plunge in 42 Days Exposes AI Spending Shift
IBM is trading near its 52-week low of $212.34 (2.2% above the low) on elevated volume (6.8× avg).
Summary
IBM's market value has collapsed by over $100 billion in just 42 days, with shares down 35% from record highs as corporate tech spending pivots sharply from software to AI infrastructure. The sell-off accelerated Tuesday with a 25% single-day crash—the worst since 1968—erasing $69 billion after CEO Arvind Krishna warned that clients are redirecting budgets to servers, storage, and memory, causing numerous large deals to fail. Q2 revenue is now expected at $17.2B, up only 1% and missing estimates, with mainframe weakness and cybersecurity spending shifts adding pressure. This follows IBM's Q1 beat and a $1B quantum grant in May, but the sudden demand erosion raises existential questions about software stocks if the trend persists. Full Q2 results on July 22 will be critical to gauge the damage.
At the time of this announcement, IBM was trading at $217.07 on NYSE in the Technology sector, with a market capitalization of approximately $204B. The 52-week trading range was $212.34 to $332.46. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Moneycontrol.