IBM Shares Plunge 25% as AI Infrastructure Spending Squeezes Sales
Updated
Updated · Bloomberg · Jul 15
IBM Shares Plunge 25% as AI Infrastructure Spending Squeezes Sales
3 articles · Updated · Bloomberg · Jul 15
Summary
IBM’s 25% stock plunge marked its worst day on record after the company said sales fell well short of expectations.
Customers redirected budgets from IBM products to AI computing gear—especially servers, storage and memory—leaving the company exposed to a spending shift it said it failed to anticipate.
The warning sharpened a divide across tech: companies tied directly to AI infrastructure are gaining, while large vendors selling non-AI products and services face pressure on demand and valuations.
IBM’s miss has become a broader signal that the AI buildout is not lifting all tech boats, but instead crowding out conventional enterprise IT spending.