IBM shares collapsed by approximately 25% in US trading on Tuesday, wiping out a quarter of the company's market capitalization in a single day.
The sell-off represents the most severe one-day decline for the technology giant since the 1987 market crash, signaling a profound shift in investor sentiment toward the firm's business model.
The sharp repricing followed the release of disappointing preliminary second-quarter results, which failed to meet market expectations.
Traders interpreted the weak figures as evidence that IBM is struggling to maintain momentum in its core enterprise services and software divisions.
The market is increasingly viewing the company as a victim of the broader industry pivot, where corporate IT budgets are being redirected away from traditional infrastructure maintenance and toward artificial intelligence initiatives.
This development underscores a widening divergence within the technology sector.