IBM’s stock plummeted on Tuesday in its largest single-day loss in its 115-year history, after CEO Arvind Krishna warned investors the computing firm’s latest quarter was “worse than our expectations” while failing to adapt to rising chip costs. That erased about $67 billion from IBM’s market capitalization, valuing the firm at just under $205 billion. The historic decline followed a letter from Krishna to IBM investors on Tuesday, in which Krishna said about the company’s “disappointing” second-quarter performance: “What played out was worse than our expectations. We did not adapt and move quickly enough.” Krishna said customers adjusted their technology budgets as demand from AI data centers made servers, storage and memory harder to obtain, adding that while IBM anticipated some supply chain disruptions, the company did not expect customers to shift so much of their spending away from software and toward buying AI hardware. Krishna also cited the release of Anthropic’s Mythos, which he said stalled several large deals as customers weighed the implications of the AI model, which Anthropic claimed could enable hackers to identify cybersecurity vulnerabilities before companies detect them.
Published: July 14, 2026 3:06 pm
Source: Forbes — Read original