IBM stock tanks: CEO Arvind Krishna says AI chip spending took toll
• IBM shares plummeted on Tuesday after CEO Arvind Krishna admitted that shifting priorities in the AI economy are negatively impacting the company's core business. • Krishna stated in a shareholder letter that IBM failed to anticipate the scale of capital expenditure reprioritization as clients pivot their spending. • The company noted that customers are increasingly distracted by urgent cybersecurity needs triggered by new AI-driven threats, further diverting resources.
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