{"id":2256,"date":"2026-07-14T14:06:43","date_gmt":"2026-07-14T14:06:43","guid":{"rendered":"https:\/\/americanhomejournals.com\/?p=2256"},"modified":"2026-07-14T14:06:43","modified_gmt":"2026-07-14T14:06:43","slug":"ibm-stock-plunges-24-as-it-says-clients-are-spending-less-on-its-ai-products","status":"publish","type":"post","link":"https:\/\/americanhomejournals.com\/?p=2256","title":{"rendered":"IBM stock plunges 24% as it says clients are spending less on its AI products"},"content":{"rendered":"<section>\n<p>IBM shares tanked Tuesday after the tech giant reported worse-than-expected results and said customers were cutting back spending on its AI infrastructure and software products.<\/p><p>Read more <a href=\"https:\/\/americanhomejournals.com\/?p=2253\">Ramp cofounder says he hired people who built businesses on Minecraft at 15 years old<\/a><\/p><p>The company&#8217;s stock dropped 24% at the open. Having closed at $290 per share on Monday, the stock opened just above $221 on Tuesday.<\/p><p>The precipitous drop in IBM&#8217;s stock came after it reported a second-quarter &#8220;shortfall&#8221; in the performance of its software and infrastructure division, linked to the rollout of its new z17 mainframes, which are designed to process AI workloads.<\/p><div>\n<div>\n<noscript>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" alt=\"Line chart\" class=\"wp-image-2255\" height=\"749\" src=\"https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/3e6d5867c94b4e74c3f7f41f46912f15-1024x749.png\" width=\"1024\" srcset=\"https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/3e6d5867c94b4e74c3f7f41f46912f15-1024x749.png 1024w, https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/3e6d5867c94b4e74c3f7f41f46912f15-300x219.png 300w, https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/3e6d5867c94b4e74c3f7f41f46912f15-768x562.png 768w, https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/3e6d5867c94b4e74c3f7f41f46912f15.png 1220w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/noscript>\n<\/div><\/div><p>IBM CEO Arvind Krishna said that a major factor in the lower-than-expected performance was clients cutting spending on IBM products and reprioritizing their capex spend on &#8220;servers, storage, and memory purchases&#8221; ahead of &#8220;expected price increases.&#8221;<\/p><p>The prospect of further price rises appears to have prompted IBM&#8217;s clients to prioritize hardware procurement over the software and mainframe purchases the company had anticipated.<\/p><p>Krishna said in his letter to investors that while IBM had expected some changes in clients&#8217; spending patterns, the company &#8220;did not anticipate the magnitude of the capex reprioritization.&#8221;<\/p><p>&#8220;This quarter we faltered,&#8221; Krishna said in a letter to investors released Tuesday. &#8220;We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we expected, driving the majority of our shortfall.&#8221;<\/p><p>Read more <a href=\"https:\/\/americanhomejournals.com\/?p=2251\">OpenAI is breaking Silicon Valley\u2019s unwritten code. That\u2019s why Apple is so angry.<\/a><\/p>\n<h2>Software stocks falter on spending fears<\/h2><p>IBM&#8217;s warning and its sharp share price drop spread to other software providers, with Salesforce 4% and Microsoft dropping almost 3%. The IGV tech software ETF, which tracks a broad basket of software companies, was 2% lower.<\/p><p>What is driving software stocks lower is a change in spending patterns triggered by a global shortage of memory chips that has driven up hardware prices since late 2025.<\/p><p>Memory giants like Samsung, SK Hynix, and Micron have shifted production toward the specialized chips that power AI data centers, and that capacity is effectively sold out for 2026 under long-term contracts. The result is a squeeze on the everyday memory used by servers, PCs, and phones.<\/p><p>Micron&#8217;s CEO has said he expects &#8220;tight conditions to persist beyond calendar 2027 as a result of AI-driven demand across all segments coupled with structural supply constraints.&#8221;<\/p><p>IBM reported revenues of $17.2 billion across the company in the second quarter, up 1%, but behind analyst expectations. Revenues in the infrastructure division were down 7%.<\/p><p>Read more <a href=\"https:\/\/americanhomejournals.com\/?p=2249\">Michael Dell has nailed his relationship with Donald Trump, and it\u2019s paying off<\/a><\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>&#8220;This quarter we faltered,&#8221; IBM CEO Arvind Krishna said in a letter to investors released Tuesday after worse than expected quarterly results.<\/p>\n","protected":false},"author":1,"featured_media":2254,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-2256","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ai"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>IBM stock plunges 24% as it says clients are spending less on its AI products - American home journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/americanhomejournals.com\/?p=2256\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IBM stock plunges 24% as it says clients are spending less on its AI products - American home journals\" \/>\n<meta property=\"og:description\" content=\"&quot;This quarter we faltered,&quot; IBM CEO Arvind Krishna said in a letter to investors released Tuesday after worse than expected quarterly results.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/americanhomejournals.com\/?p=2256\" \/>\n<meta property=\"og:site_name\" content=\"American home journals\" \/>\n<meta property=\"article:published_time\" content=\"2026-07-14T14:06:43+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/3e6d5867c94b4e74c3f7f41f46912f15.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1220\" \/>\n\t<meta property=\"og:image:height\" content=\"892\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/#\\\/schema\\\/person\\\/a3bb30439d8074c26cddd2e4af7af957\"},\"headline\":\"IBM stock plunges 24% as it says clients are spending less on its AI products\",\"datePublished\":\"2026-07-14T14:06:43+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256\"},\"wordCount\":446,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/americanhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/ab196c6f78b41a3b5bfed077eab53c11.webp\",\"articleSection\":[\"AI\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256\",\"url\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256\",\"name\":\"IBM stock plunges 24% as it says clients are spending less on its AI products - American home journals\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/americanhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/ab196c6f78b41a3b5bfed077eab53c11.webp\",\"datePublished\":\"2026-07-14T14:06:43+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/#\\\/schema\\\/person\\\/a3bb30439d8074c26cddd2e4af7af957\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256#primaryimage\",\"url\":\"https:\\\/\\\/americanhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/ab196c6f78b41a3b5bfed077eab53c11.webp\",\"contentUrl\":\"https:\\\/\\\/americanhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/07\\\/ab196c6f78b41a3b5bfed077eab53c11.webp\",\"width\":1200,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/?p=2256#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/americanhomejournals.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"IBM stock plunges 24% as it says clients are spending less on its AI products\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/#website\",\"url\":\"https:\\\/\\\/americanhomejournals.com\\\/\",\"name\":\"American home journals\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/americanhomejournals.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/americanhomejournals.com\\\/#\\\/schema\\\/person\\\/a3bb30439d8074c26cddd2e4af7af957\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/americanhomejournals.com\"],\"url\":\"https:\\\/\\\/americanhomejournals.com\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"IBM stock plunges 24% as it says clients are spending less on its AI products - American home journals","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/americanhomejournals.com\/?p=2256","og_locale":"en_US","og_type":"article","og_title":"IBM stock plunges 24% as it says clients are spending less on its AI products - American home journals","og_description":"\"This quarter we faltered,\" IBM CEO Arvind Krishna said in a letter to investors released Tuesday after worse than expected quarterly results.","og_url":"https:\/\/americanhomejournals.com\/?p=2256","og_site_name":"American home journals","article_published_time":"2026-07-14T14:06:43+00:00","og_image":[{"width":1220,"height":892,"url":"https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/3e6d5867c94b4e74c3f7f41f46912f15.png","type":"image\/png"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/americanhomejournals.com\/?p=2256#article","isPartOf":{"@id":"https:\/\/americanhomejournals.com\/?p=2256"},"author":{"name":"admin","@id":"https:\/\/americanhomejournals.com\/#\/schema\/person\/a3bb30439d8074c26cddd2e4af7af957"},"headline":"IBM stock plunges 24% as it says clients are spending less on its AI products","datePublished":"2026-07-14T14:06:43+00:00","mainEntityOfPage":{"@id":"https:\/\/americanhomejournals.com\/?p=2256"},"wordCount":446,"commentCount":0,"image":{"@id":"https:\/\/americanhomejournals.com\/?p=2256#primaryimage"},"thumbnailUrl":"https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/ab196c6f78b41a3b5bfed077eab53c11.webp","articleSection":["AI"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/americanhomejournals.com\/?p=2256#respond"]}]},{"@type":"WebPage","@id":"https:\/\/americanhomejournals.com\/?p=2256","url":"https:\/\/americanhomejournals.com\/?p=2256","name":"IBM stock plunges 24% as it says clients are spending less on its AI products - American home journals","isPartOf":{"@id":"https:\/\/americanhomejournals.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/americanhomejournals.com\/?p=2256#primaryimage"},"image":{"@id":"https:\/\/americanhomejournals.com\/?p=2256#primaryimage"},"thumbnailUrl":"https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/ab196c6f78b41a3b5bfed077eab53c11.webp","datePublished":"2026-07-14T14:06:43+00:00","author":{"@id":"https:\/\/americanhomejournals.com\/#\/schema\/person\/a3bb30439d8074c26cddd2e4af7af957"},"breadcrumb":{"@id":"https:\/\/americanhomejournals.com\/?p=2256#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/americanhomejournals.com\/?p=2256"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/americanhomejournals.com\/?p=2256#primaryimage","url":"https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/ab196c6f78b41a3b5bfed077eab53c11.webp","contentUrl":"https:\/\/americanhomejournals.com\/wp-content\/uploads\/2026\/07\/ab196c6f78b41a3b5bfed077eab53c11.webp","width":1200,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/americanhomejournals.com\/?p=2256#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/americanhomejournals.com\/"},{"@type":"ListItem","position":2,"name":"IBM stock plunges 24% as it says clients are spending less on its AI products"}]},{"@type":"WebSite","@id":"https:\/\/americanhomejournals.com\/#website","url":"https:\/\/americanhomejournals.com\/","name":"American home journals","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/americanhomejournals.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/americanhomejournals.com\/#\/schema\/person\/a3bb30439d8074c26cddd2e4af7af957","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/americanhomejournals.com"],"url":"https:\/\/americanhomejournals.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=\/wp\/v2\/posts\/2256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2256"}],"version-history":[{"count":0,"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=\/wp\/v2\/posts\/2256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=\/wp\/v2\/media\/2254"}],"wp:attachment":[{"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/americanhomejournals.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}