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IBM’s AI Bet Hits a Wall | Durham News
IBM’s stock plummeted 25% after a crushing Q2 earnings miss, sparking fears it’s not just a blip but a deeper problem tied to AI spending shifts. While companies still invest in IT, they’re prioritizing hardware—servers, storage, memory—due to supply crunches and looming price hikes. That’s a win for hardware makers but a blow for IBM, which relies more on lower-margin hardware than its high-margin software and consulting. CEO admits they “faltered” in adapting fast enough. Prior to this, IBM looked strong: revenue up, software booming, and optimism around its WatsonX AI platform. But now…
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