The stock plunged 25% on Tuesday, its biggest single-day drop since 1968. That crash alone wiped out about $69 billion. Add it up and IBM has now lost 35% in 42 days, erasing more than $100 billion in market value. The stock is even trading below its “Black Monday” 1987 levels. The fallout spread fast. Microsoft, ServiceNow, Salesforce and Intuit all slipped 2% to 5% as investors worried the same problem could hit other software firms. The trigger: Companies are buying hardware, not software In its update, IBM admitted it had “faltered” as corporate tech budgets moved. Instead of spending on traditional software and mainframes, companies are redirecting cash into AI data-center buildouts — servers, chips, storage, networking. IBM’s mainframe business, which serves banks, airlines and other heavy users of enterprise computing, took the biggest hit. From record high to record pain Just 42 days ago, on June 2, IBM was up 13% YTD and at an all-time high. Now it’s down 35%. “The biggest lesson of the AI era: never get comfortable,” The Kobeissi Letter wrote on X, calling IBM the first big casualty of the shift. “AI is rapidly transforming the global economy. Adapt or be left behind.” The bigger question Wall Street’s main concern now isn’t just IBM. It’s whether this is a short-term rotation into AI infrastructure, or the start of a longer-term move away from legacy software. Either way, Tuesday’s selloff was a wake-up call for the sector. IBM is down, and the market wants to know who’s next. Post navigation 28-Year-Old Hindu Doctor Shot Dead during Robbery In Karachi
