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00:02IBM shares fell more than 25% Tuesday, their largest one-day decline on record,
00:09according to The Wall Street Journal. The company warned that customers shifted spending from
00:13software toward AI servers, storage, and memory chips. The sell-off erased $69 billion in market
00:20value and raised concerns that rising AI infrastructure costs are crowding out
00:25traditional technology budgets. CEO Arvind Krishna said IBM underestimated the scale of the spending
00:31shift and acknowledged execution problems during the quarter. IBM plans to launch Anderon with $1
00:37billion from the Trump administration and invest another $9 billion over five years to develop
00:43quantum computing chips and supercomputers. Software stocks including Salesforce, Workday,
00:49Adobe, and ServiceNow also fell as investors weighed broader budget pressures from AI adoption.
00:54For all things money, visit Benzinga.com.
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