After shocking quarter, IBM insists that AI isn’t killing the mainframe
IBM's stock fell 25% after reporting disappointing earnings, driven by a 42% decline in its mainframe business, which was attributed to customer delays and rising costs. The company's CEO and CFO stated the decline was temporary, with customers expected to return to mainframes as budgets reallocated due to the AI boom. Despite the challenges, IBM's full-year growth forecasts were lowered, and the stock experienced its largest single-day decline ever.
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