‘We Faltered’: IBM Falls Most Since At Least 1968 on Sales Miss

IBM shares experienced their largest single-day drop since at least 1968 following a quarterly sales report that failed to meet analyst expectations. The company stated that clients are prioritizing spending on chips and server hardware to support artificial intelligence initiatives, leading to reduced investment in traditional service contracts. This shift highlights the broader market trend where infrastructure demand driven by AI development is altering established enterprise software and consulting budget cycles.