IBM warns AI boom hurting software firms, triggering big rout

IBM's stock nosedived by over 20% after the company's warning that the booming AI market was negatively impacting traditional software firms, sparking a significant market downturn. This bold projection revealed that businesses were increasingly turning to AI for their tech needs, sidelining conventional software providers. The substantial drop in IBM's shares underscores broader industry shifts, highlighting how AI advancements are reshaping competitive dynamics and investor sentiments. This shake-up suggests a potential realignment in the tech sector, where AI's dominance could redefine market strategies and future growth.