IBM reported earnings and revenue below expectations due to enterprises reducing spending on traditional IT systems to invest in their own AI infrastructure. This shift indicates companies prefer developing on-premises AI solutions with cheaper open-source models rather than relying on costly frontier AI models hosted by hyperscalers. The trend reflects a broader AI infrastructure bubble burst, where overinvestment in expensive AI datacenters by hyperscalers contrasts with enterprise demand for more affordable AI options. This change may reshape the AI market and investment strategies going forward.
Shares of International Business Machines (IBM) fell 5% in premarket trading following the company's weak earnings report in July. The stock has declined about 15% since the start of the year, reflecting ongoing investor concerns about IBM's financia...
International Business Machines (IBM) is set to report its third-quarter earnings with analysts expecting earnings per share of $2.87 and revenue of $16.84 billion, both increases from the previous year. Susquehanna has maintained a Neutral rating on...
