IBM shares extend losing streak, plunge 26% in five sessions after sales miss

International Business Machines Corp (IBM) shares plunged 26.5% over five sessions after the company reported preliminary second-quarter revenue of around $17.2 billion, missing analyst expectations of $17.9 billion. The stock recorded its biggest single-day fall of 25% on July 14 since at least 1968, with CEO Arvind Krishna attributing the weakness to customers shifting spending toward AI-related chips, servers and memory amid global semiconductor supply shortages. The Infrastructure division saw a 7% decline in sales, underscoring concerns that surging AI infrastructure spending is being funded at the expense of traditional software budgets.