IBM Shares Plunge 25% on AI Miss

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.

The warning highlighted the rapid transformation underway in enterprise technology spending as companies redirect budgets toward AI infrastructure.

The collapse marked one of the most dramatic single-day value destructions in the company's century-long history.