New York, Feb 12, 2026, 14:18 EST — Regular session
- IBM shares dropped roughly 4.5% in afternoon trading, deepening the tech sector’s decline
- IBM unveiled a new FlashSystem storage lineup this week, centered on what it calls “agentic AI”
- Friday’s U.S. CPI report is now the main focus for traders looking for the next market driver
Shares of International Business Machines Corp dropped 4.5% to $260.66 in Thursday afternoon trading, slipping $12.15 from the previous close. The stock hit an intraday low of $257.21, with roughly 8.5 million shares traded.
U.S. technology and software stocks dropped again, as investors pushed companies to deliver results from their hefty AI investments. Jack Herr, lead investment analyst at GuideStone Funds, called 2026 a “prove it” year for AI. The Nasdaq tumbled roughly 1.5%, while the S&P 500 dipped about 1%. 1
Macro data also kept markets jittery. Investors are now eyeing Friday’s U.S. consumer price index report, following a series of strong labor reports that have shaken up expectations about when the Federal Reserve might begin cutting rates. 2
IBM pushed its AI angle this week with a revamped FlashSystem storage lineup. The company claims the new gear can slash manual storage management by up to 90% and spot ransomware—malware that locks data for ransom—in less than a minute. “FlashSystem becomes a strategic AI partner,” said Sam Werner, IBM Storage’s general manager. IDC research VP Natalya Yezhkova added the upgrades should boost workload automation and security. The new FlashSystem will be generally available on March 6. 3
IBM dubs this new method “agentic AI”—software agents that act independently instead of just responding to queries. The company is marketing it as a tool to identify issues, optimize performance, and steer recovery efforts while reducing human involvement.
Timing tripped up the stock on Thursday. Wall Street quickly shifted focus—from debating who talks about AI to demanding who delivers results—and the entire sector’s value adjusted on the fly.
The downside is clear: if companies can’t prove AI investments boost earnings, or if inflation pushes the Fed to keep tight policies, tech valuations could slide once more—even for established firms tied to long-cycle enterprise spending.
IBM usually stands out as a steadier player in tech, relying heavily on large corporate contracts and infrastructure services. But days like today shake that perception, as sellers lump the whole sector together when AI stocks start falling.
Investors will be closely monitoring if IBM’s product launch drives actual customer deals when the FlashSystem models hit the market in early March, or if buyers continue holding off on purchases until the broader economic picture improves.
Friday’s U.S. CPI report, dropping before the market opens, is the next big trigger. It might shift expectations for rate cuts and influence IBM along with the wider tech sector heading into next week.
