The AI scare trade is real as IBM stock plummets 13.5% due to fears of disruption to COBOL workloads. Anthropic argues AI can modernize tasks. Market value of $31 billion lost, but shares up slightly. Analysts see unwarranted sell-off, maintain positive outlook on IBM’s fundamentals and software growth prospects.

IBM invested in code modernization and generative AI, like watsonx Code Assistant for Z. Clients stay with mainframe for reliability, speed, cost efficiency, and security. Analysts view sell-off as sentiment overhang, not structural risk. IBM CFO optimistic about client demand for AI, hybrid architecture, and resiliency.

Brian Sozzi, Yahoo Finance’s Executive Editor, covers IBM’s stock moves amidst AI disruption fears. For more stock market analysis and news, visit Yahoo Finance.

Read more at Yahoo Finance: AI scare trade casualty: IBM