IBM Plunges 25%: Is Corporate IT Spending Moving From Software to AI Hardware?
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$IBM(IBM)$ IBM delivered one of the clearest signals yet that the AI boom is reshaping corporate technology budgets. The company’s shares plunged about 25% after it released preliminary second-quarter results below Wall Street expectations. IBM expects quarterly revenue of roughly $17.2 billion, up only 1% year over year and below the $17.86 billion analysts expected. Adjusted earnings are projected at $2.93 per share, versus the $3.02 consensus estimate. (Reuters) The headline numbers were disappointing, but the explanation was even more important. IBM CEO Arvind Krishna said that during the final weeks of June, corporate clients redirected part of their quarterly capital spending toward servers, storage and memory. Customers wante