Shares in IBM plunged 24 percent on Tuesday after the US tech giant released disappointing preliminary second-quarter results, blaming a shift in spending by customers due to expected higher prices for memory chips and other AI-related infrastructure.
"We did not adapt and move quickly enough," IBM CEO Arvind Krishna said in a letter to investors. The company said revenue for the three months ending in June came in at $17.2 billion, up just one percent.
A global rush by tech companies to build out artificial intelligence infrastructure has sent demand for servers, memory chips and storage soaring, driving up prices and creating supply shortages across the industry.
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