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Benzinga
IBM (NYSE: IBM) shares are rebounding Tuesday after plunging more than 13% Monday following concerns about AI disruption.

The sell-off came after Anthropic promoted its Claude Code AI assistant, which claims it can modernize large COBOL codebases — the same legacy systems that IBM has long serviced across banking and government infrastructure.

Key points:
• IBM fell more than 13% Monday
• Claude Code targets COBOL modernization
• IBM earns steady revenue from legacy mainframe systems
• Stock is trading below 100-day and 200-day moving averages
• RSI suggests oversold conditions
• Analysts maintain a Buy consensus with average price target near $319

The volatility highlights the broader question facing legacy tech incumbents: will AI erode their profit pools, or power their next growth phase?

#IBM #AI #StockNews

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Transcript
00:00IBM just plunged 13%, but now it's bouncing back. So what happened? The sell-off started
00:05after Anthropic published a blog post promoting its cloud code AI assistant. The tool claims it
00:11can modernize massive COBOL codebases, the same legacy systems IBM has serviced for decades.
00:18COBOL still powers large parts of global banking and government infrastructure,
00:22and IBM earns steady revenue maintaining and upgrading those environments. If generative
00:28AI can automate that work, investors worry a key profit pool could shrink. That's what triggered
00:33the drop. Technically, the stock is still under pressure. It's trading well below its 100 and
00:38200-day moving averages. But RSI shows the stock is in oversold territory, and analysts remain mixed,
00:45with an overall buy consensus and an average price target near $320. So now the real question is this,
00:52will AI disrupt IBM's legacy business, or will IBM win the AI modernization wave itself?
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