IBM Stock Set for Worst Month in 34 Years Amid AI Disruption Fears

IBM's stock is on track to record its worst monthly performance in 34 years, as selling pressure intensifies following a recent 13% single-day plunge—the company's steepest since 2000. This decline has wiped out approximately $31 billion in market value, driven by investor fears that Anthropic’s Claude AI model could disrupt IBM’s core legacy business in COBOL processing. As Claude demonstrates capabilities in automating the translation of legacy code, IBM's traditional service model faces significant obsolescence risks. This historic monthly downturn underscores deep-seated market anxiety regarding the vulnerability of established tech giants to generative AI disruption. Analysts highlight that the rapid pace of technological shifts has placed IBM under unprecedented pressure not seen in decades.