IBM shares down 23% as clients spend more on hardware and memory chips

https://www.cnbc.com/2026/07/14/ibm-warns-second-quarter-earnings-fell-short-of-expectations.html

by rvz • 8 days ago

21 10 8 days ago

Current title too kind to IBM...real title is: "IBM stock craters 23% after issuing second-quarter earnings warning"

kstrauser• 8 days ago

I wonder how true that is, vs customers using AI to port projects off big iron, or to many work that they’d previously outsourced to Big Blue. I suspect it’s only going to get easier to migrate to cheap servers running modern languages, which can’t be great news for companies that highly depend on lock-in.

rwmj3• 8 days ago

This is such a nonsense take. You have no idea how the companies that use mainframes actually operate. There's no world in which they will vibecode a solution.

GenerWork• 8 days ago

There's no world in which they will vibecode a solution.

It's not like the Bank of Americas of the world are going to get an Anthropic or OpenAI API key, and then use the prompt "move this off of COBOL please". They'll either hire a contractor who'll work out how to best utilize AI to migrate the existing codebase off of mainframes, or spin up an internal team to do the same thing.

kotaKat• 8 days ago

You're absolutely right!

.... and that's because the mainframe industry is so heavily gatekept that the information feels practically word-of-mouth between a circle of old greybeards that don't want to let the kids touch it.

Always wanted to even get my hands on ZD&T but IBM never thought I was worthy enough.

rwmj3• 8 days ago

Press release: https://newsroom.ibm.com/2026-07-14-Arvind-Krishnas-Letter-t...

ChrisArchitect• 8 days ago

Some later discussion: https://news.ycombinator.com/item?id=48907665

IBM shares down 23% as clients spend more on hardware and memory chips

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