IBM sends shockwave through tech industry with AI warning

IBM reported a significant decline in its second-quarter earnings and forecasted worse-than-expected results due to weaker performance in its mainframe software and infrastructure business. The company's shares dropped nearly 23% in pre-market trading, impacting the broader tech sector, as clients shifted spending toward hardware to avoid future price increases. The CEO attributed the shortfall to client capital expenditure reallocations amid supply concerns.

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