IBM shares have suffered their worst decline in the company's 115-year history, dropping 24%. CEO Arvind Krishna attributes the collapse to a significant shift in how customers are allocating their technology budgets over recent months.
According to Krishna, client spending has been redirected away from IBM's core products and mainframes toward infrastructure essential for AI data centers—specifically servers, storage, and memory. This reallocation reflects the broader industry rush to build and expand AI computing capacity, leaving traditional enterprise IT vendors like IBM scrambling to adapt their business models to the new market priorities.
