More than £50billion was wiped off the value of IBM as shares suffered what looked set to be the biggest one-day fall in more than 100 years of trading.
Shares in the tech giant fell more than 25 per cent in early trading in New York – putting it on course to eclipse the previous record drop of 23 per cent on Black Monday in 1987.
The slump – the worst endured by IBM since it listed on the stock market in 1915 – wiped £52billion off its value to leave it worth £151billion.
The rout came after IBM warned that profits had been hit by a shift in corporate spending away from the kind of software it specialises in towards servers, storage and memory ahead of price increases driven by the AI boom.
‘What played out was worse than our expectations,’ said IBM chief executive Arvind Krishna. ‘We did not adapt and move quickly enough.’
