IBM lowers revenue forecast on AI infrastructure shift

IBM lowered its full-year revenue growth forecast, the company said, as customers redirect spending toward artificial intelligence infrastructure. The revision reflects a broader trend where enterprises prioritize AI hardware and cloud services over traditional IT upgrades.

The technology giant cited the spending shift in its earnings commentary, noting that demand for AI-related offerings is accelerating while conventional projects slow. IBM did not specify the new revenue growth target in its preliminary statement.

IBM carries an AlphaScala Alpha Score of 43 out of 100, a mixed rating amid the IT sector's ongoing shift toward AI-focused investments.