Software investors have long been on edge over fears that AI tools capable of automating routine work could pose an existential threat to the industry. Tuesday's announcement showed that even the boom in spending on servers, chips and networking gear for AI was eating into software budgets.

July 14 : IBM's preliminary second-quarter revenue forecast came below Wall Street estimate on Tuesday, as customers prioritized spending on AI infrastructure, including servers,…

July 14 : IBM sparked a market rout on Tuesday after forecasting second-quarter revenue below estimates and signaling that businesses were favoring spending on data-center…

Empresa de software enfrentou forte desvalorização após anunciar resultados do segundo trimestre

The sector-wide rout was ignited by IBM releasing its preliminary second-quarter results ahead of schedule

IBM's warning shows how AI infrastructure and cybersecurity spending are reshaping technology budgets.