IBM Warns AI Infrastructure Shift Impacts Software Deals, Shares Plunge
IBM said customers shifted spending to secure supply-constrained infrastructure, delaying software deals and driving shares down 23%.
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IBM shares dropped significantly after the company warned that customers are redirecting spending toward hardware infrastructure like servers and storage instead of software and consulting services. The shift occurred as customers sought to secure supply-constrained infrastructure ahead of anticipated price increases, which the company did not fully anticipate. This pattern reflects an "infrastructure-first" phase across the enterprise market, where organizations are prioritizing hardware purchases to meet AI demands before expanding software projects. For data center operators, this suggests sustained demand for computing capacity and infrastructure even as enterprise software spending may slow.
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