IBM stock plunges 23% as it says clients are spending less on its AI products
IBM stock dropped nearly 23% following a disappointing second-quarter report where the company missed revenue expectations. CEO Arvind Krishna attributed the shortfall to clients cutting back on AI infrastructure spending and delaying major deals.
Why it matters
The decline signals potential cooling in corporate AI infrastructure investment, impacting major tech sector valuations.
Inside an IBM data center. Connie Zhou for IBM IBM stock tanked in premarket trading on Tuesday after worse-than-expected Q2 results. The company's stock was set to open down almost 23%. "This quarter we faltered," IBM CEO Arvind Krishna said in a letter to investors. IBM shares tanked in premarket trading on Tuesday after the tech giant reported worse-than-expected results and said customers were cutting back spending on its AI infrastructure and software products. The company's stock was set to open down almost 23% as of around 7:45 a.m. ET, an hour and a half before the market open. Having closed at $290 per share on Monday, the stock was set to open at $224 on Tuesday.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in