IBM — IBM shares plunge 25% after warning of poor Q2 results amid AI pressure

IBM's stock plummeted 25% in a single day after the company warned that its second-quarter financial results would be significantly worse than anticipated. The historic drop, larger than its 1987 Black Monday crash, highlights the intense pressure on the company's legacy businesses as the AI boom shifts corporate IT spending. CEO Arvind Krishna's strategy of focusing on hybrid-cloud and long-term quantum computing is being challenged as IBM falls further behind pure-play AI competitors.