By David Moadel
Publication Date: 2026-10-22 13:03:00
IBM’s CEO just raised a red flag about AI spending that rattled investors and rippled through the entire tech sector, even as the company posted a clean earnings beat. The question is whether his warning signals a broader shift in…
A quarter that topped Wall Street forecasts on revenue and adjusted earnings is drawing sellers into International Business Machines (NYSE:IBM | IBM Price Prediction), as an unchanged full-year outlook and pointed artificial intelligence (AI) commentary from the chief executive set the tone. IBM stock is down 7% to $233.50 in morning trading.
Today’s selling pressure is powerful in the technology sector. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.9% on AI spending worries, while the iShares U.S. Technology ETF (NYSEARCA:IYW) is down 2%.
Chief executive Arvind Krishna delivered that commentary after IBM reported third-quarter 2026 results on October 21. The company sells the software, mainframes and consulting companies use to implement AI,…
