IBM issued a rare mid-quarter warning that triggered its sharpest single-day stock decline in 115 years on Tuesday, with CEO Arvind Krishna citing an AI-driven global memory shortage shifting enterprise budgets from software to hardware. The change could unsettle vendors beyond IBM as corporate spending prioritizes supply-constrained components.
The decline marked the company's steepest one-day fall since its founding.
The spending redirection could unsettle multiple enterprise vendors reliant on software and mainframe revenue.
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