The company lost about $69 billion in market value on Tuesday after the CEO flagged that the AI infrastructure boom was drawing spending away from other technologies and issued preliminary Q2 forecasts that were below estimates.
The preliminary results weighed on U.S., European software and Indian IT stocks as investors gauge whether newer AI models could potentially disrupt business models of traditional software companies.
The stock hit its lowest level in nearly two months and has lost over a quarter of its value so far this year.
Shares steady after sharp Tuesday decline
Shares of International Business Machines (IBM.N) steadied after sharp declines on Tuesday, up 0.7% at $218.49 in premarket trading.
The stock slumped 25.2% in the previous session, marking its biggest daily decline on record in the CRSP U.S. Stock Database from Morningstar, which goes back to December 31, 1925.
The IT company's shares debuted on November 11, 1915 as Computing-Tabulating-Recording Co (CTR) and was later renamed IBM in 1924.
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