• International Business Machines (NYSE:IBM) issued a Q2 earnings warning that triggered a single day share price drop of about 25%.
• The company cited a rapid shift in enterprise technology budgets toward AI infrastructure and away from traditional software and mainframes.
• The move spotlights execution issues for IBM as clients focus more on AI hardware, memory supply constraints, and cybersecurity priorities.

International Business Machines enters this setback after a multi year period in which the stock rose 68.6% over 3 years and 91.6% over 5 years, before the recent pullback. At a current share price of $212.67, the stock is down 26.0% over the past week, 18.9% over the past month, and 27.0% year to date, with a 1 year decline of…