IBM Shares Plunge 25% on Revenue Warning

IBM shares suffered their worst single-day drop in decades, falling more than 25% after the company warned that second-quarter revenue missed expectations as clients shifted spending to AI hardware.

The sell-off wiped out $70 billion in market value and dragged down other software stocks.

Analysts said the company was caught off guard by how quickly corporate spending priorities have changed in the wake of AI memory chip mania.

The warning exposed a new economic fault line as companies redirect budgets toward AI infrastructure.