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2 weeks ago

IBM sends 'shock wave' through tech industry with AI warning

Shares of IBM were down more than 23% when the market opened on Tuesday, raising fresh questions about whether companies are seeing enough near-term returns from artificial intelligence spending.It is shaping up to be the worst day for IBM in decades, as its second-quarter earnings results showed profit and revenue missed analysts' forecasts.In a letter to investors on Tuesday, CEO Arvind Krishna said IBM's Z mainframe business — its large enterprise computing systems boasting advanced AI capabilities — lagged behind the company’s outlook. The flagship product is the z17, described as a "trans...