IBM warns that the AI boom is reshaping how customers allocate spending, pressuring software budgets and weighing on expectations for its next quarter. Multiple outlets report IBM forecasts second-quarter revenue below analysts’ estimates, attributing the gap to clients directing more spend toward AI infrastructure rather than other software. The company’s guidance and commentary contribute to a broader decline across the software sector, with investors reacting to the implications for demand and pricing. One outlet reports IBM shares drop sharply in premarket trading, and the fall spills over into other software-linked stocks and market indicators such as Dow futures. Overall coverage describes the same theme: IBM links near-term budget pressure to customers’ shifting priorities toward AI-related systems, and the market interprets this as a headwind for software revenue growth. The reports collectively present IBM’s outlook, the stated reason for weaker performance relative to expectations, and the resulting sector-wide selloff that includes IBM and peers.